Stock market today, Feb. 27, 2015: Good morning! DJIA futures forecasted a 13-point decrease from yesterday's close. As of 9 a.m. EDT, DJIA futures read an 11-point (0.06%) loss.
This morning, investors are reacting to the second revision of the Q4 2014 GDP reading. The U.S. government said it grew a pace of 2.2%, which beat expected growth of 2.1% in fourth quarter. Still, the figure was reduced from the previous reading of 2.6% and the pace is a large decline from the Q3 2014 final reading of 5%.
Later this morning, the markets will keep an eye on the University of Michigan's final February count on consumer sentiment, and a report on pending January home sales. Economists anticipate a consumer sentiment reading of 94, a slight increase from the initial 93.6 reading. Meanwhile, January pending home sales are expected to increase 2% - a solid bump after December's surprise 3.7% decline.
DJIA futures and Friday's fresh economic data are just a part of the story in stock market news today. Here are the other top headlines - plus your "Money Morning Tip of the Day":
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Full U.S. Economic Calendar Feb. 27, 2015 (NYSE: all times EST)
Money Morning Tip of the Day: High-margin specialty drugs, and specifically drugs used to treat hepatitis C, offer one of the best profit opportunities right now in the pharmaceutical market.
High-margin specialty drugs are prescription medications that treat complex, chronic, and debilitating diseases. They're very expensive - as much as hundreds of thousands of dollars.
The market for these medications will quadruple over the next five years. Consumer spending on these drugs hit $87.1 billion in 2012. In five years that number will soar to $401.7 billion.
Some of the priciest high-margin specialty drugs include Soliris, developed by Alexion Pharmaceuticals, and Elaprase, by Shire. Soliris treats a rare blood disorder and costs patients roughly $410,000 per year. Elaprase treats Hunter syndrome and costs $375,000 per year.
Those hefty price tags have caused these drug makers' stocks to surge. Since 2010, Alexion has gained 625%, and Shire 275%.
The biggest profit play of all in high-margin specialty drugs comes from makers of hepatitis C treatments. An April 2014 report from Express Scripts found that spending on hepatitis C drugs is expected to increase by more than 200% in both 2015 and 2016.
Newer and more convenient treatments in the coming years will drive sales. And the high price of these hepatitis C drugs will propel the stocks of the pharmaceutical companies that make them to new heights.
Get the best stock pick to play this trend right now, here: "These Pharmaceutical Stocks Let You Tap into a $402 Billion Trend."
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.