Shares of Celgene (CEL) are getting pummeled in today’s trading. The drug maker warned about its first-quarter earnings and that has sparked the heavy selling today.
This is interesting for two reasons. First, we can see that the economy is impacting healthcare stocks which are often immune for economic downturns. The other reason is that Celgene had been a very strong stock for a long time. Wall Street was expecting sales for Q1 of $647 million. Today, Celgene said its sales will come in around $600 million.
Earnings warnings are like cockroaches, there are several more hiding for each one you see. In a few days, earnings season begins and we’re going to see more announcements like the one we just got from Celgene.