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Futures Slide As Amazon, Berkshire, JPMorgan Deal Rattles Healthcare | Stock News & Stock Market Analysis

Stock futures dug into some hefty early losses Tuesday, as news of Amazon.com (AMZN) making a move into a new segment of the rattled stocks across the healthcare fields.

XNasdaq 100 futures sagged 0.9% lower, with Maxim Integrated Products (MXIM) and ExpressScripts (ESRX) putting up heavy resistance.

Futures for the Dow Jones Industrial average hung nearly 0.6% below fair value, with UnitedHealth Group (UNH) down hard and Caterpillar (CAT), Apple (AAPL) and Home Depot (HD) among the Dow Jones names clocking premarket losses of greater than 1%.

S&P 500 futures were off 0.5%, and the Russell 2000 small cap gauge slipped 0.6%.

The Federal Open Market Committee swings into its two-day meeting in Washington — the last FOMC gathering over which Federal Reserve Chair Janet will preside. A policy announcement is set for 2 p.m. ET Wednesday, though no rate hike is expected this time around.

Other economic news for the day is thin, with the Case-Shiller Housing Price Index for November due out at 9 a.m. ET, and the January consumer confidence survey from the Conference Board expected at 10 a.m. ET. Investors this evening will be tuned in to President Trump’s State Of The Union speech, which is not expected to break any news, but has the potential to move markets on Wednesday.

Amazon, Berkshire, Morgan Deal Stirs Premarket Session

Healthcare stocks were reacting briskly to news that Amazon would partner with Berkshire Hathaway (BRKA) and (J.P.) (JPM) to chart out new ways to provide healthcare for their U.S. employees, “through an independent company that is free from profit-making incentives and constraints.” The deal suggested that the ‘Amazon effect’ — the impact of deep pockets and massive online scale the company brings to its efforts – could begin to assert an impact on healthcare and insurance industries, the way it has on retail, shipping and other markets.

Amazon rose 0.1%, J.P. Morgan rose a fraction and Berkshire Hathaway was effectively flat.

On the Dow, UnitedHealth Group dove nearly 7% in premarket action.  Other managed care providers responded similarly, with Anthem (ANTM) down 7%, Cigna (CI) sliding 5% and Aetna (AET) and Humana (HUM) subtracting more than 3% apiece.

Shares also dived among pharmacy benefits managers and pharmacy chains, with ExpressScripts down 6% to the bottom of the Nasdaq 100. CVS Health (CVS) crumbled nearly 6%. Walgreens Boots Alliance (WBA) and Rite Aid (RAD) fell 3% each.

Apple traded down 0.9%, as news reports detailed the company reducing production plans for its iPhone X through March 31. Some reports said this was on weaker-than-expected demand, others said the move was seasonal and occurred around this time each year. Apple spent its third session below its 10-0week moving average on Monday, and will start Tuesday in a test of it prior low, from early December.

Amazon shares are extended, almost 17% above a 1213.10 buy point following a breakout in early January.

Life insurer MetLife (MET) tumbled after announcing late Monday it would postpone its fourth quarter earnings report as the company wrestles with a foul up that potentially left “tens of thousands” of workers without monthly pension benefits. The company said it would increases reserves by $525 million to $575 million in order to deal with teh problem, and revealed that the Securities & Exchange Commission was investigating the matter.

Maxim Integrated dived 10% ahead of the open, reversing much of Monday’s 12% gain that followed news reports that the company was a possible takeover target for Japanese rival Renesas for $20 billion. In reports after Monday’s close, Renesas denied any that it was in takeover discussions with Maxim.

Callidus Software (CALD) spiked 10% ahead of the open, after announcing German software giant SAP (SAP) would acquire the company for $2.4 billion. Dublin, CAlif.-based CAllidus operate as CallidusCloud, providingcloud-based sales and marketing programs. SAP also reported above-forecast fourth quarter sales and earnings, and full-year 2018 guidance. Shares slipped 0.1%.

Other Important Market News For Tuesday:

The Big Picture: 3 Signs The Market May Be Ready For A Break

These 2 China Stock Leaders Are Getting More Volatile; Time To Sell?

Why Trump’s State Of The Union Might Move Market Up – Or Down

 

 

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