Don’t abandon biotech after it helped send U.S. markets reeling on Wednesday, CNBC “Fast Money” traders said.
“I’m still a believer in biotech,” said trader Guy Adami.
The Nasdaq (NASDAQ: .IXIC) was the biggest loser in Wednesday’s broad selloff, shedding more than 2 percent. The iShares Nasdaq Biotechnology ETF (NASDAQ: IBB) dropped more than 4 percent to close around $ 341.
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The fund has seen one-day moves of that magnitude in the past, so selling it now would be rash, Adami said. He added that Celgene (NASDAQ: CELG) looked appealing after slipping more than 4 percent to settle around $ 117 per share.
Amgen (NASDAQ: AMGN) seemed the most “defensive” biotech name despite falling more than 3 percent on Wednesday, trader Tim Seymour said. He noted that the stock has been “trapped” in a range near $ 160 per share for months.
Traders also discussed how to play other sectors hit hard in Wednesday’s selloff.
A more than 3 percent jump in U.S. crude oil prices (New York Mercantile Exchange: @CL.1) helped to push Dow transportation stocks (Dow Jones Global Indexes: .DJT) 2 percent lower on Wednesday. Delivery services company FedEx (NYSE: FDX) also fell more than 2 percent.
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Weakness in the stock offers a buying opportunity, Seymour said. It closed around $ 165 per share on Wednesday.
Trader Brian Kelly looked at more direct energy plays. He liked movement in the Energy Select Sector SPDR Fund (NYSE Arca: XLE) and United States Brent Oil Fund (NYSE Arca: BNO), both of which climbed more than 1 percent higher on Wednesday.
Big-name chipmakers Qualcomm (NASDAQ: QCOM), Intel (NASDAQ: INTC) and Micron (NASDAQ: MU) all lost ground on Wednesday. Intel has the most upside in the space, Seymour and Kelly contended.
It dropped nearly 3 percent on Wednesday to close below $ 30 per share. Seymour noted that weakness in the personal computer business-which Intel heavily supplies-has already been priced in.
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