Illumina Inc., based in San Diego, provides sequencing and array-based solutions for genetic analysis. The company's products and services are sold to genomic research centers, academic institutions, government and commercial laboratories, and hospitals, as well as to pharmaceutical, biotech, agrigenomics, and consumer genomics businesses. The company's portfolio of products and services is designed to accelerate and simplify genetic analysis. Illumina also invests in startup companies that are pursuing promising genomic-related opportunities. It has roughly 8,600 employees. ILMN shares are included in the S&P 500 index.

Stocks are headed higher at midday, this ahead of the three-day weekend. Sentiment related to the peace plan with Iran is overpowering other issues, be those issues tagged as 'good' or 'bad.' Of note is news that three oil tanker have now successfully crossed the Strait of Hormuz and oil prices are indeed receding (with crude now under $74 per barrel). Future headlines that might grab attention are the path of interest rates, the trend in inflation, the next round of earnings reports (which will be here sooner than later), and then, of course, the midterm elections. On that score, Wall Street tends to prefer gridlock in Washington. Currently, Republicans have control of all three major national political branches: the presidency, the Senate, and the House of Representatives. That seems likely to change, as incumbent parties tend to lose ground in midterm elections. Indeed, the latest forecasts from prediction markets website Kalshi.com give the Democrats a better-than-75% chance to take over the House of Representatives, while the GOP is poised to narrowly hold on to the Senate. Historically in midterm election years, stocks have stumbled in early autumn on the prospect for change. Average S&P 500 returns in the third quarter of midterm election years since 1980 are -1.5%, including a 5% slide in 3Q22. However, once the results are in, investors respond positively to the likelihood of potential Washington gridlock (meaning that the odds are low for major legislation changes on taxes, trade, regulations, the economy, or the markets). This positive sentiment is reflected in relative outperformance in the final months of the midterm year, as 4Q S&P 500 returns have averaged 4.1% in midterm election years since 1980, including an 8% pop in 4Q22.

The major indices took a break on Tuesday, following three days of strong returns. Perhaps more accurately, the semiconductor stocks took a break. So even with some rotation into Financials (XLF, +1.5%) and Utilities (XLU) and Industrials (XLI), which both rose +0.7%, it wasn't enough for a fourth day of overall gains. Technology (XLK) gave back 2.8%, with the major semiconductor ETFs dropping 5%-6%. Maybe we will finally see more than a few days of weakness from the momentum bandwagon and more than a week of rotation.

Illumina provides tools and services to analyze genetic material with life science and clinical lab applications. The company generates over 90% of its revenue from sequencing instruments, consumables, and services. Illumina’s high-throughput technology enables whole genome sequencing in humans and other large organisms. Its lower throughput tools enable applications that require smaller data outputs, such as viral and cancer tumor screening. Illumina also sells microarrays (9% of 2024 sales) that enable lower-cost, focused genetic screening with primarily consumer and agricultural applications.