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March 22, 2022, 10:14 a.m. EDT

This group of stocks is flagging a rebound, and that’s good news for the S&P 500, says technical analyst

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By Barbara Kollmeyer

Stocks have kicked off Tuesday’s trading on a stronger note, as oil trails and markets keep one eye on hawkish Fed talk and another on the brutal battle for Ukraine.

Some of that positivity may come from the fact investors look ready to choose higher rates over higher inflation, with the former seen as less toxic for companies in the longer run, said Ipek Ozkardeskaya, senior analyst at Swissquote. 

Read: Jerome Powell leaves door open for rate hikes larger than 25 basis points

While everything can change in a minute, investors might be wondering what it will take for the S&P 500 to build on last week’s 6% rally. Our call of the day , from MKM Partners’ chief market technician, JC O’Hara, advises watching for signs of stabilization in areas that were first hit in the leg downward.

And biotech is fitting that theme, he said. “The S&P 1500 Biotech group of stocks is bouncing exactly where it should.” He zeroes in on two charts, from Ionis Pharmaceuticals /zigman2/quotes/201272020/composite IONS -0.20% and Moderna /zigman2/quotes/205619834/composite MRNA -4.99% , the latter which is holding a vaccine day presentation for investors on Thursday.

It’s not just biotech. “There are more and more pharmaceutical charts breaking out to new highs in a tape that saw plenty of bear market moves from individual names,” said O’Hara, as he flagged bullish charts from Bristol Myers Squibb /zigman2/quotes/202559280/composite BMY -0.54% , Corcept Therapeutics /zigman2/quotes/208802180/composite CORT -4.38% , Harmony Biosciences /zigman2/quotes/220014849/composite HRMY -1.55% , Innoviva /zigman2/quotes/208205248/composite INVA +0.48% , Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +0.89% , Eli Lilly /zigman2/quotes/200106384/composite LLY -1.16% , and Pacira BioSciences /zigman2/quotes/202929053/composite PCRX +0.38% .

O’Hara also likes European pharmaceutical stocks. “While geopolitical concerns remain front and center in Europe, pharma seems to be a good place to put capital to work.”

He sees bullish charts on the following names: ALK-Abello /zigman2/quotes/208996981/delayed DK:ALK.B +1.60% , AstraZeneca /zigman2/quotes/200304487/composite AZN -0.10% , Bayer /zigman2/quotes/206842998/delayed XE:BAYN -1.05% , GlaxoSmithKline /zigman2/quotes/209463850/composite GSK +0.89% , Ipsen /zigman2/quotes/200122335/delayed FR:IPN -0.10% , Novartis /zigman2/quotes/203243705/composite NVS +0.52% , Novo Nordisk /zigman2/quotes/203484366/composite NVO -0.99% , Roche /zigman2/quotes/206324342/delayed CH:ROG +0.22% , Sanofi /zigman2/quotes/201967021/composite SNY +2.24% and UCB /zigman2/quotes/207179459/delayed BE:UCB -0.25% .

As for that 6% S&P 500 rally last week, O’Hara said the most positive takeaway was a close above the key 4,400 level.

“The magnitude of the move was impressive, but the levels broken above are what we need to focus on,” said O’Hara, who noted other “bullish action,” such as the Russell 2000 /zigman2/quotes/210598147/delayed RUT -0.04% and Nasdaq 100 indexes /zigman2/quotes/210598365/realtime COMP -0.19% breaking above intermediate downtrends. And the Stoxx Europe 600 regained a level seen the day Russian launched its attack on Ukraine.

The buzz

Ukraine forces claim to have recaptured a key suburb in Kyiv, while the battle for Mariupol rages on and strategists say a stalemate situation is building. President Vladimir Zelensky says he’s ready to discuss a deal for a Russian cease-fire .

Accounts, yachts, private jets, properties in London, Italy and France worth more than $17 billion have been connected to Russian officials with close ties to President Vladimir Putin, plus dozens of oligarchs.

Nike /zigman2/quotes/203439053/composite NKE +1.50% reported stronger-than-expected earnings and sales , lifting shares in premarket, and bucking worries about slumping China sales.

Chinese e-commerce giant Alibaba /zigman2/quotes/201948298/composite BABA -1.65% boosted its buyback program to $25 billion.

The Okta  /zigman2/quotes/210420951/composite OKTA -1.02% authentication company said it’s investigating images appearing to show a hack of its internal system. That hack is believed to be Brazil-based, though the U.S. has warned at least 100 companies to brace for Russian cyberattacks.

The data calendar is empty but we’ve got more Fed speakers ahead — New York Fed President John Williams, San Francisco President Mary Daly and Cleveland President Loretta Mester.

/zigman2/quotes/201272020/composite
US : U.S.: Nasdaq
$ 44.32
-0.09 -0.20%
Volume: 635,625
Aug. 16, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.30 billion
Rev. per Employee
$1.29M
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/zigman2/quotes/205619834/composite
US : U.S.: Nasdaq
$ 167.96
-8.82 -4.99%
Volume: 5.05M
Aug. 16, 2022 4:00p
P/E Ratio
5.12
Dividend Yield
N/A
Market Cap
$69.16 billion
Rev. per Employee
$8.47M
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/zigman2/quotes/202559280/composite
US : U.S.: NYSE
$ 74.13
-0.40 -0.54%
Volume: 9.03M
Aug. 16, 2022 4:00p
P/E Ratio
24.63
Dividend Yield
2.91%
Market Cap
$159.14 billion
Rev. per Employee
$1.46M
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/zigman2/quotes/208802180/composite
US : U.S.: Nasdaq
$ 26.84
-1.23 -4.38%
Volume: 627,085
Aug. 16, 2022 4:00p
P/E Ratio
28.52
Dividend Yield
N/A
Market Cap
$2.98 billion
Rev. per Employee
$1.65M
loading...
/zigman2/quotes/220014849/composite
US : U.S.: Nasdaq
$ 50.11
-0.79 -1.55%
Volume: 376,683
Aug. 16, 2022 4:00p
P/E Ratio
52.70
Dividend Yield
N/A
Market Cap
$3.01 billion
Rev. per Employee
$2.02M
loading...
/zigman2/quotes/208205248/composite
US : U.S.: Nasdaq
$ 14.63
+0.07 +0.48%
Volume: 661,156
Aug. 16, 2022 4:00p
P/E Ratio
11.83
Dividend Yield
N/A
Market Cap
$1.01 billion
Rev. per Employee
$83.53M
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/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 167.57
+1.48 +0.89%
Volume: 7.45M
Aug. 16, 2022 4:00p
P/E Ratio
24.36
Dividend Yield
2.70%
Market Cap
$436.68 billion
Rev. per Employee
$674,898
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/zigman2/quotes/200106384/composite
US : U.S.: NYSE
$ 310.31
-3.63 -1.16%
Volume: 2.25M
Aug. 16, 2022 4:03p
P/E Ratio
49.48
Dividend Yield
1.26%
Market Cap
$298.29 billion
Rev. per Employee
$830,591
loading...
/zigman2/quotes/202929053/composite
US : U.S.: Nasdaq
$ 57.95
+0.22 +0.38%
Volume: 355,775
Aug. 16, 2022 4:00p
P/E Ratio
72.51
Dividend Yield
N/A
Market Cap
$2.65 billion
Rev. per Employee
$881,374
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/zigman2/quotes/208996981/delayed
DK : Denmark: OMX
kr. 146.30
+2.30 +1.60%
Volume: 59,682
Aug. 17, 2022 11:44a
P/E Ratio
13.03
Dividend Yield
N/A
Market Cap
kr.32.17 billion
Rev. per Employee
kr.1.54M
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/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 66.74
-0.07 -0.10%
Volume: 4.43M
Aug. 16, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
2.13%
Market Cap
$205.18 billion
Rev. per Employee
$531,227
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/zigman2/quotes/206842998/delayed
XE : Germany: Xetra
53.73
-0.57 -1.05%
Volume: 358,533
Aug. 17, 2022 11:47a
P/E Ratio
12.45
Dividend Yield
3.72%
Market Cap
€52.62 billion
Rev. per Employee
€485,332
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/zigman2/quotes/209463850/composite
US : U.S.: NYSE
$ 35.26
+0.31 +0.89%
Volume: 11.69M
Aug. 16, 2022 4:00p
P/E Ratio
11.75
Dividend Yield
5.67%
Market Cap
$68.68 billion
Rev. per Employee
$523,365
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/zigman2/quotes/200122335/delayed
FR : France: Euronext Paris
97.00
-0.10 -0.10%
Volume: 6,592
Aug. 17, 2022 11:39a
P/E Ratio
10.91
Dividend Yield
1.24%
Market Cap
€8.05 billion
Rev. per Employee
€513,980
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/zigman2/quotes/203243705/composite
US : U.S.: NYSE
$ 85.82
+0.44 +0.52%
Volume: 1.65M
Aug. 16, 2022 4:00p
P/E Ratio
8.40
Dividend Yield
2.52%
Market Cap
$186.95 billion
Rev. per Employee
$494,340
loading...
/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 105.32
-1.05 -0.99%
Volume: 1.87M
Aug. 16, 2022 4:00p
P/E Ratio
31.51
Dividend Yield
1.08%
Market Cap
$239.65 billion
Rev. per Employee
$468,232
loading...
/zigman2/quotes/206324342/delayed
CH : Switzerland: SWX
CHF 316.35
+0.70 +0.22%
Volume: 188,957
Aug. 17, 2022 11:47a
P/E Ratio
17.90
Dividend Yield
2.94%
Market Cap
CHF261.95 billion
Rev. per Employee
CHF637,961
loading...
/zigman2/quotes/201967021/composite
US : U.S.: Nasdaq
$ 44.81
+0.98 +2.24%
Volume: 3.77M
Aug. 16, 2022 4:00p
P/E Ratio
15.07
Dividend Yield
2.81%
Market Cap
$109.27 billion
Rev. per Employee
$474,871
loading...
/zigman2/quotes/207179459/delayed
BE : Belgium: Euronext Brussels
73.02
-0.18 -0.25%
Volume: 36,706
Aug. 17, 2022 11:47a
P/E Ratio
16.02
Dividend Yield
1.25%
Market Cap
€13.89 billion
Rev. per Employee
€691,975
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/zigman2/quotes/210598147/delayed
US : US Composite
2,020.53
-0.82 -0.04%
Volume: 0.00
Aug. 16, 2022 5:53p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
13,102.55
-25.50 -0.19%
Volume: 5.04B
Aug. 16, 2022 5:16p
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/zigman2/quotes/203439053/composite
US : U.S.: NYSE
$ 118.06
+1.74 +1.50%
Volume: 6.19M
Aug. 16, 2022 4:00p
P/E Ratio
31.46
Dividend Yield
1.03%
Market Cap
$182.47 billion
Rev. per Employee
$591,555
loading...
/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 92.65
-1.55 -1.65%
Volume: 12.00M
Aug. 16, 2022 4:04p
P/E Ratio
51.05
Dividend Yield
N/A
Market Cap
$248.01 billion
Rev. per Employee
$518,515
loading...
/zigman2/quotes/210420951/composite
US : U.S.: Nasdaq
$ 106.02
-1.09 -1.02%
Volume: 1.45M
Aug. 16, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$16.90 billion
Rev. per Employee
$291,081
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