3Q Financial Markets Preview: Summer scrapes bottom

Biotech indices may be mostly back to or even below where they started the year, but investors aren't in a hurry to do bottom fishing over the summer. Instead, they are hopeful biotech's bad breaks last quarter have lowered expectations enough that, after a quiet summer, the sector could hit its stride again in the fall.

Investors and bankers argue the sector should have hit bottom, and if the broader market stabilizes, it will attract value investors and facilitate financings that were put on hold this spring...