U.S. Markets open in 9 hrs 5 mins

CVS, Walmart reach agreement on pharmacy contract after impasse

(Reuters) - CVS Health Corp and Walmart Inc said on Friday the world's largest retailer would remain part of CVS's network for commercial and Medicaid pharmacy customers, breaking a contract impasse CVS disclosed earlier this week.

The companies did not provide financial terms of the new contract.

On Tuesday, CVS said the companies had failed to agree on pricing and that Walmart was leaving the pharmacy network for the prescription drug plans that CVS manages for companies and health insurers and for the Medicaid program for low income people.

The companies also said on Tuesday they were still in discussions.

CVS shares gained 1.6 percent to $64.76 in premarket trading, recouping some of its Tuesday losses.

"We view the agreement positively for CVS," Cantor Fitzgerald analyst Steven Halper said in a research note, explaining that the loss of Walmart pharmacies could have negatively impacted CVS' ability to sign customers for its 2020 prescription drug plans.

In addition to its retail pharmacies and stores, CVS is one of the country's biggest pharmacy benefit managers and, after buying Aetna, one of its top health insurance companies. Its prescription plans for the Medicare population were unaffected by the contract dispute as was its Sam's Club agreements.

Walmart senior vice president Sean Slovenski described the terms as "fair and equitable" in a press release.


(Reporting by Caroline Humer in New York and Ankur Banerjee in Bengaluru; Editing by Shounak Dasgupta and Chizu Nomiyama)

  • Dow Jones Futures: Trump's China Trade News Aids Stock Market Rally; Analyzing Apple, These Top Stocks
    Business
    Investor's Business Daily

    Dow Jones Futures: Trump's China Trade News Aids Stock Market Rally; Analyzing Apple, These Top Stocks

    Dow Jones futures rose Sunday night, along with S&P 500 futures and Nasdaq futures, amid China trade war comments from President Donald Trump. A newly confirmed stock market rally came under pressure right away. The major averages suffered weekly losses in a wild week with conflicting China trade war news and a rare Treasury yield curve inversion.

  • A gun law case before the US Supreme Court has Americans up in arms
    Finance
    Quartz

    A gun law case before the US Supreme Court has Americans up in arms

    The US Supreme Court will soon consider the right to bear arms, something it hasn't done for nearly a decade. The case in question has pitted New York City against the New York State Pistol and Rifle Association over a law on transporting guns. The twist here is that New York City, and its many legal allies, say the case is actually moot.

  • Mark Cuban explains how to make a 16% guaranteed return
    Business
    MarketWatch

    Mark Cuban explains how to make a 16% guaranteed return

    As Mark Cuban, the “Shark Tank” star, billionaire entrepreneur, and NBA franchise owner explains, just pay off your debts. The personal finance site NerdWallet put our revolving credit card balance at $420.22 billion in late 2018. The revolving number is just the credit card debt we carry from month to month.

  • The first funeral for a glacier won’t be the last
    World
    Quartz

    The first funeral for a glacier won’t be the last

    In 2014, the Icelandic glacier Okjökull was declared dead. Today, scientists, politicians, and members of the public gathered at the site of the former glacier to mourn its passing and hope that such a loss never happens again. Because of global warming, scientists found, the glacier had lost so much ice that what remained was melting where it sat, a sign of “dead ice.

  • This Oil Stock Continues to Prove It's a Cash Flow-Gushing Machine
    Business
    Motley Fool

    This Oil Stock Continues to Prove It's a Cash Flow-Gushing Machine

    The cash continues to flow Wallette pointed out on the call that "we generated $3.4 billion of cash from operations" during the second quarter. That was easily enough to cover the company's capital expenses, which totaled $1.7 billion in the quarter. As a result, the company produced $1.7 billion of free cash flow during the quarter, pushing its year-to-date total to $3 billion.

  • These 16 money wasters are why so many Americans can’t save for retirement
    News
    MarketWatch

    These 16 money wasters are why so many Americans can’t save for retirement

    From the lofty perch of old age, and after a lifetime of thrift, I declare that I am qualified to comment on how not to waste money. We've all heard the reports: Most Americans live paycheck to paycheck, a large number can't come up with $400 for an emergency, and there's no money to save for retirement and other goals. Most of that data comes from surveys where people are, in effect, saying they don't have enough income.

  • I built a nest egg of $1 million and I’m only 46 — so why do I still spend my waking hours worrying?
    Business
    MarketWatch

    I built a nest egg of $1 million and I’m only 46 — so why do I still spend my waking hours worrying?

    We have over $1 million in investments for ourselves, an additional $50,000 in investments for our two girls to be used for college. We have made investing mistakes, but we have learned from them. All told, we currently have over $1 million in investments for ourselves, an additional $50,000 in investments (529s and a Scottrade custodial account) for our two girls to be used for college, with our only debt being the final few years of our mortgage.

  • 3 Dividend Stocks That Should Pay You the Rest of Your Life
    Business
    Motley Fool

    3 Dividend Stocks That Should Pay You the Rest of Your Life

    There's a balance in the dividend space between high yields and dividend sustainability. In the end, it's generally more important to find stocks that can keep paying -- and hopefully increasing -- their dividends than to stretch for high yields that are ephemeral because they are backed by dividends that are likely to get cut. If you want to add a few good dividend names to your portfolio, these three Motley Fool contributors think you'll want to look at biotech Gilead Sciences (NASDAQ: GILD), telecom giant Verizon (NYSE: VZ), and consumer products specialist Procter & Gamble (NYSE: PG).

  • The U.S. Rig Count Is Falling -- Here's Why Oil Production Keeps Rising Anyway
    Business
    Motley Fool

    The U.S. Rig Count Is Falling -- Here's Why Oil Production Keeps Rising Anyway

    Not surprisingly, this rising rig count drove strong growth in U.S. oil production. However, a sharp drop in oil prices last fall caused oil companies to start cutting back on drilling activity. As a result, the U.S. oil rig count has fallen steadily during 2019 and is now significantly lower than it was a year ago.

  • Trump Administration Asks Supreme Court to Permit Employment Discrimination Against Transgender Workers
    Politics
    Meredith Videos

    Trump Administration Asks Supreme Court to Permit Employment Discrimination Against Transgender Workers

    The Trump administration's Department of Justice is asking the Supreme Court to set a legal precedent that would enable employers to fire employees because they are transgender.

  • 3 High-Growth Stocks That Are Just Getting Started
    Business
    Motley Fool

    3 High-Growth Stocks That Are Just Getting Started

    Powering the rise of solar energy Maxx Chatsko (Enphase Energy): Sure, shares of Enphase Energy have soared 580% since the beginning of the year, but first-half 2019 operating results suggest there's plenty of room to run. The solar hardware provider reported 60% year-over-year revenue growth and a nearly $28 million increase in operating income in that span. The most recent quarterly results actually exceeded management's long-term targets for gross profits, operating expenses, and operating income, but CEO Badri Kothandaraman said he's going to wait a few more quarters before setting new operating targets.

  • Florida Vacation Home Invaded By Dozens of Vomiting Vultures
    U.S.
    Meredith Videos

    Florida Vacation Home Invaded By Dozens of Vomiting Vultures

    A New York couple's luxurious vacation house in Florida has been taken over by dozens of black vultures that are vomiting and defecating everywhere.

  • SoftBank to Lend Founder and Employees Billions to Invest in Fund
    Business
    The Wall Street Journal

    SoftBank to Lend Founder and Employees Billions to Invest in Fund

    Softbank is leaning on its employees, including its chief executive, for cash as the firm rushes to raise an ambitious technology fund amid volatile markets.

  • Better Buy: Aurora Cannabis vs. Cronos Group
    Business
    Motley Fool

    Better Buy: Aurora Cannabis vs. Cronos Group

    Production capacity Aurora Cannabis ranks at the top of the industry when it comes to production capacity. The company is on track to produce at least 625,000 kilograms of cannabis on an annual basis. Aurora isn't there yet, though: It produced around 30,000 kilograms of cannabis for sale in its latest quarter.

  • Copy insiders and buy these stocks — because they see no recession looming
    Business
    MarketWatch

    Copy insiders and buy these stocks — because they see no recession looming

    I recently told subscribers of my stock letter Brush Up on Stocks to get more bullish on stocks because of robust insider buying in cyclical sectors like tech, banks, industrials, chemicals, airlines, autos, hotels, energy, mining, and brokerage and investment companies. Insiders would definitely not be doing this if — like Gundlach — they saw a recession on the way. Instead, they'd be on a buyer's strike, or at best they'd favor utilities or consumer non-discretionary companies.

  • Target Earnings: What to Watch
    Business
    Motley Fool

    Target Earnings: What to Watch

    These trends suggest that the chain's multichannel selling strategy might deliver the robust sales and earnings gains that management has been promising, just as it has recently for peer Walmart (NYSE: WMT). CEO Brian Cornell and his team predicted in May that Target would gain market share across its retailing categories and in both the physical and digital selling channels. We'll find out whether that bullish forecast played out when the company announces second-quarter results on Wednesday, Aug. 21.

  • Don't Be Tempted by Macy's Big Dividend Yield
    Business
    Motley Fool

    Don't Be Tempted by Macy's Big Dividend Yield

    Macy's reaffirmed its guidance for roughly flat sales growth for the full year but slashed its EPS guidance from $3.05-$3.25 to $2.85-$3.05 -- which would equal a 27% to 32% drop from 2018. Wall Street had expected a 27% decline. Macy's big post-earnings drop reduced its forward P/E to 6 and boosted its dividend yield to 8%.

  • I Lost $34,000 This Week: Here's What I'm Doing About It
    Business
    Motley Fool

    I Lost $34,000 This Week: Here's What I'm Doing About It

    That's because I have a fundamental understanding that stocks will almost certainly prove to be the best way to grow my wealth over the next two-plus decades, and the only way to attain those returns is to ride out volatility without letting fear take the reins and cause me to sell at the worst time: when my portfolio has lost value. To the contrary, I've taken advantage of these sell-offs and been a buyer over the past month. Moreover, I have measurable evidence that this strategy works.

  • Have These Tumbling Cannabis Stocks Hit Bottom Yet?
    Business
    Motley Fool

    Have These Tumbling Cannabis Stocks Hit Bottom Yet?

    Shares of cannabis stocks large and small were beaten down after soft second-quarter results disappointed investors expecting soaring sales of recreational cannabis in Canada that haven't materialized. As a result, some of the world's largest cannabis companies have stock prices miles below their peaks. Has the market already pulled these cannabis kings down as far as it can, or could they sink even lower?

  • Here's Why We Think Sirius XM Holdings (NASDAQ:SIRI) Is Well Worth Watching
    Business
    Simply Wall St.

    Here's Why We Think Sirius XM Holdings (NASDAQ:SIRI) Is Well Worth Watching

    In contrast to all that, I prefer to spend time on companies like Sirius XM Holdings (NASDAQ:SIRI), which has not only revenues, but also profits. How Fast Is Sirius XM Holdings Growing? As one of my mentors once told me, share price follows earnings per share (EPS).

  • Kevin O’Leary: This easy math trick helps you crush retirement goals
    Business
    MarketWatch

    Kevin O’Leary: This easy math trick helps you crush retirement goals

    “Shark Tank” star Kevin O'Leary has some simple advice for anyone who finds investing scary: Just do it. Ten percent might not sound like a lot, but the reason O'Leary is right is the mathematical fact of compounding interest. If you save, say, $5,000 in one year, a typical stock market return in a diversified, low-cost index fund means that a year later you will have $5,365.

  • Does Sangamo Therapeutics, Inc.'s (NASDAQ:SGMO) CEO Salary Reflect Performance?
    Business
    Simply Wall St.

    Does Sangamo Therapeutics, Inc.'s (NASDAQ:SGMO) CEO Salary Reflect Performance?

    Sandy Macrae has been the CEO of Sangamo Therapeutics, Inc. (NASDAQ:SGMO) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Our data indicates that Sangamo Therapeutics, Inc. is worth US$1.3b, and total annual CEO compensation is US$4.1m.

  • 4 Industry Leaders With Ultra-High Dividends
    Business
    Motley Fool

    4 Industry Leaders With Ultra-High Dividends

    With long-term bond yields at historically low levels, conservative investors may be looking to high-dividend stocks in order to get the returns they seek. For those looking for high dividends in a low-interest world, here are four market leaders that not only are household names but also sport dividend yields north of 4% and look to be safe bets to make good on those payments long term. AT&T (NYSE: T) is currently the second-largest U.S. mobile telecom service provider next to rival Verizon. Both AT&T and Verizon have large recurring subscriber bases and are currently investing heavily in the next-generation wireless communications: 5G.

  • Saudi Arabia Makes a Promise That It Just Can’t Keep
    World
    Bloomberg

    Saudi Arabia Makes a Promise That It Just Can’t Keep

    Saudi Arabia isn't as willing to do whatever it takes to support oil prices as it would have us believe. That's the only conclusion one can draw from what we've learnt since a government official said the kingdom wouldn't tolerate a continued price slide. After crude fell to a seven-month low earlier this month, Saudi Arabia got on the phone to other members of the OPEC+ group of nations to discuss possible policy responses.

  • Here’s the game plan for U.S. stock investors if China retaliates against Trump
    Business
    MarketWatch

    Here’s the game plan for U.S. stock investors if China retaliates against Trump

    In the past, China has shown extraordinary restraint in response to U.S. tariffs and President Trump's critical tweets. Let us discuss your game plan if China retaliates, starting with the help of two charts. Please click here for an annotated chart S&P 500 ETF (SPY) Even though the Dow Jones Industrial Average (DJIA) is the most popular index, for analysis purposes, investors ought to focus on S&P 500 because the most money is tied to the S&P 500 Index (SPX) of the largest U.S. companies.