Diamonds and Dogs

12/24/18

Jazz Pharmaceuticals (JAZZ) wide awake. The drug stock is up 3% after the FDA extended the review period of its new drug treatment to improve wakefulness and reduce excessive daytime sleepiness in adult patients with narcolepsy or obstructive sleep apnea. Jazz already has one marketed therapy called Xyrem for treating cataplexy and excessive daytime sleepiness in patients suffering from narcolepsy. Significantly, successful development and commercialization of JZP-110 should strengthen Jazz's sleep disorder portfolio and help boost its top line.

Defense stocks under pressure as military leaders are stepping down in the Trump administration. Lockheed Martin (LMT) is down 3%. Northrop Grumman (NOC) is down 3% even though they won a $3.6 billion Air Force contract.  The retired general's resignation came on the heels of Trump's surprise announcement that the U.S. would be pulling troops from Syria, and followed his decision to remove troops from Afghanistan. General Mattis was seen as the lone remaining grownup in Trump's Cabinet. His departure will make our European allies nervous.