Humana (HUM) has spiked more than 11% in premarket trading. That's on top of nearly a 9% climb near the end of the day yesterday. What's behind the health insurer's jump? The feds now say they'll increase the payment rate for insurers who offer coverage through the Medicare Advantage program. That's a reversal of a prior decision. Even with the gains, Humana is trading more than $10 below its 52-week high which was a year ago today.
Next up, Pinnacle Foods (PF) has investors salivating. The newly-traded stock was up almost another 5% yesterday, and has been moving higher in premarket trading. That means, since Pinnacle's IPO last Thursday, when shares were issued at $20 a pop, they've gained about 20%. Pinnacle is the parent company of brands like Duncan Hines, Birdseye, Vlasic Pickles and Lenders Bagels. The CEO says he wants to use all the company's newly acquired cash for mergers and acquisitions.
Also on the topic of food, McCormick (MKC) spicing things up this morning with its quarterly earnings report. The company earned 57-cents a share, beating estimates by a penny. Prior to this report, McCormick had missed estimates twice in the past year. McCormick is currently trading in the low-to-mid $70 range, almost $20 higher than it was this time last year.
Finally, reporting this afternoon, G-III (GIII) Apparel. The company has licensing deals with a long list of brand names including Calvin Klein, Kenneth Cole and Timberland. It also owns Wilson's Leather and the Andrew Marc label. The company opened yesterday at its 52-week high, but lost nearly 2% during the trading day. Analysts expect the company to report earnings of 40-cents a share.