T3’s Take 3: Biotech Rocks on Deal Chatter

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1) New iPhone Day!

Apple (AAPL) held a new product launch event today, unveiling the iPhone 7 and 7 Plus smartphones, plus an updated Watch.

The iPhone 7 line features water and dust protection, plus faster processors and enhanced camera features.

In a somewhat controversial move, Apple also removed the headphone jack from the iPhone, paving the way for an all-new wireless audio interface.

While Apple didn't make any Earth-shattering announcements, iPhone fans seemed generally pleased with the new feature set, and Apple shares rose 0.6% to $108.36, outpacing the broader markets.

2) Biotech Rips on Deal Chatter

Biotech was lackluster for most of the day, but slammed up into the close on takeover rumors.

This afternoon, Reuters reported that hot biotech/marijuana play GW Pharma (GWPH) hired advisers after receiving takeover interest.

GWPH closed up 23.6% to $104.03, and in turn, the Nasdaq Biotech ETF (IBB) rose 0.7% to $286.10, making it one of the best-performing sector ETFs.

Curiously, this morning, some very “lucky” trader bought 380 February $100 GWPH calls at $4.20:

Those calls closed at $12.66.

That's what I call good timing…

3) YAWN!

Traders are still falling asleep as the S&P 500 fell -0.01% to 2186.16, with the VIX falling back under 12.

We haven't had a 1% S&P move since July 8, and we haven't had a 1% down day since June 27.

On the plus side, we saw some very bullish action below the surface.

Aside from the big biotech bounce, small caps were very strong, with the Russell 2000 rising 0.6%.

Regional banks also bounced hard, and crude oil rose after the close on a very bullish inventory report from the American Petroleum Institute.

Thursday's Trading Calendar

US Economics (Time Zone: EDT)

08:30 Initial Jobless Claims (9/3): exp. 265k, prior 263k
08:30 Continuing Claims (8/27): exp. 2151k, prior 2159k
08:45 Bloomberg Sept. United States Economic Survey
09:45 Bloomberg Consumer Comfort (9/4): prior 43.4
10:30 EIA Natural Gas Storage Change (9/2): exp. 42, prior 51
10:30 EIA Working Natural Gas Implied Flow (9/2): exp. 42, prior 51
11:00 DOE U.S. Crude Oil Inventories (9/2): exp. 905k, prior 2276k
11:00 DOE Cushing OK Crude Inventory (9/2): exp. 100k, prior -1039k
11:00 DOE U.S. Gasoline Inventories (9/2): exp. -750k, prior -691k
11:00 DOE U.S. Distillate Inventory (9/2): exp. 1150k, prior 1496k
11:00 DOE U.S. Refinery Utilization (9/2): exp. -0.40%, prior 0.30%
11:00 DOE Crude Oil Implied Demand (9/2): prior 17080
11:00 DOE Gasoline Implied Demand (9/2): prior 10060.4
11:00 DOE Distillate Implied Demand (9/2): prior 4887.3
15:00 Consumer Credit (Jul): exp. $16.000b, prior $12.320b

Global Economics

07:45 EUR Minimum Bid Rate
08:30 EUR ECB Press Conference
08:30 CAD Building Permits m/m
12:20 CAD Gov Council Member Lane Speaks
21:30 CNY CPI y/y
21:30 CNY PPI y/y

Earnings

Before Open:

Barnes & Noble (BKS)
Conn's Inc (CONN) 

After Close:

Finisar Corp (FNSR)
Restoration Hardware (RH)
Zumiez (ZUMZ)