85.98 +0.06 (0.07%)
Pre-Market: 7:20AM EDT
|Bid||84.67 x 800|
|Ask||86.85 x 1400|
|Day's Range||84.65 - 86.45|
|52 Week Range||79.31 - 96.06|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||N/A|
|Expense Ratio (net)||N/A|
U.S. retail sales surge to 18 month high in March, boosted by auto vehicles and gas stations. Sales jumped 1.6%, beating forecast of 1%. Retail expert Erin Sykes joins Yahoo Finance's Seana Smith.
If there are any investors still wondering how vicious the selloff in health care stock has been over the past couple of weeks, the charts below are worth 1,000 words. But sometimes, a sector or stock can perform so badly, that it can be a good thing.
Investors have all but abandoned sectors considered defensive in favor of cyclical stocks that perform better during periods of healthy growth.
The healthcare sector is in the midst of a stunning first-to-worst act. The Health Care Select Sector SPDR ETF (XLV) , the largest exchange traded fund (ETF) dedicated to the sector, is clinging to a modest year-to-date gain while some healthcare industry ETFs are performing much worse. For example, the iShares U.S. Healthcare Providers ETF (IHF) is lower by 5.38% year-to-date and that fund's losses have recently been accelerating.
With negative earnings revisions, the healthcare sector is expected to witness earnings growth of 1.8% in the first quarter, suggesting smooth trading for healthcare ETFs.
Healthcare stocks and sector-related exchange traded funds took a heavy blow Wednesday, trailing the broader market by a historic margin early in 2019, as political risks on Capitol Hill ramped up. The sector's latest drop has been attributed to a number of signs that politicians on both sides of the aisle in Congress are eyeing tighter regulations ahead of the 2020 presidential election, the Wall Street Journal reports. Insurers have also taken the brunt of the hit and was among the market's worst performers in recent trading amid uncertainty over the future of the U.S. healthcare policy, with UnitedHealth on pace for its worst month in a decade as the "Medicare for All" mantra weighs on investment confidence.
Efforts to make that weekly or monthly number ratchets up the pressure on making that higher average "daily number." It gets worse late in the day, late in the week, and when behind, especially late in the month. Major stock market indices traded sideways to slightly lower on Wednesday with significant carnage experienced in spots.
Analysts at Raymond James lowered their price target on shares of CVS Health Corp. to $75 from $90 on Thursday, citing "the collapse in sentiment for the payor-PBM complex." They maintained their strong buy rating on the stock, saying they "believe the discount is unwarranted," but acknowledging "significant overhangs on the political/headline front that are unlikely to abate in the immediate term." CVS shares have fallen 20% so far this year, and peers Walgreens Boots Alliance Inc. and Rite Aid Corp. have declined by 19% and 32%, respectively. A recent rout in health stocks comes amid calls for drug price transparency and U.S. Sen. Bernie Sanders' unveiling of a new "Medicare for All" plan. The SPDR Health Care Select Sector exchange-traded fund has dipped 0.8% in the year to date, severely lagging the S&P 500 , which has gained 15.7%, and the Dow Jones Industrial Average , which has gained 13.4%.
Four of the Dow Jones Industrial Average’s 10 biggest losers on Wednesday were health companies, including UnitedHealth Group Inc., Merck & Co. , Pfizer Inc. and Walgreens Boots Alliance Inc.
Stocks ended slightly lower Wednesday, with a selloff in the health care sector offsetting corporate earnings as investors paid little heed to unexpectedly strong Chinese economic data. The S&P 500 ended with a loss of around 7 points, or 0.2%, near 2,900, according to preliminary figures, while the Dow Jones Industrial Average edged around 3 points lower to finish around 26,450. The Nasdaq Composite edged down around 4 points, or less than 0.1%, to end near 7,997. Health care was the worst-performing sector in the S&P 500, falling 2.9% and turning negative for 2019, down 0.9% year to date. The sector-tracking Health Care Select Sector SPDR ETF declined 2.7% Wednesday and is off 0.7% so far this year. Analysts have tied weakness in the sector in part to the political climate, including calls for lower drug prices and a "Medicare for All"-type health insurance overhaul.
UnitedHealth Group reported robust first-quarter 2019 results. The company breezed past the Zacks Consensus Estimate on both earnings and revenues and raised its full-year forecast.
Health care stocks have been in a strong uptrend, but closes below several key trendlines suggest that this could change.
Johnson & Johnson continued its long streak of earnings beat and also outpaced revenue estimates. Though it raised the guidance for full-year sales growth, it tightened the earnings per share forecast.
Health-care stocks continued to fall on Wednesday morning, led by Anthem Inc. , Cigna Corp. and UnitedHealth Group Inc. The Health Care Select Sector SPDR Fund was down 1.5% in early intraday trade. Companies in the managed care and health services sectors are facing "temporary downside risk," thanks to the Medicare-for-all debate, analysts at J.P. Morgan wrote in a note to clients Tuesday. UnitedHealth reported earnings on Tuesday that beat expectations, but shares still fell, a possible indication of investors' anxiety over U.S. Sen. Bernie Sanders' latest Medicare-for-all proposal. The Health Care Select Sector SPDR Fund has been lagging the market in recent months, gaining 1.2% in the year to date. The S&P 500 has gained 16% and the Dow Jones Industrial Average has gained 13.4%.
Investing.com - UnitedHealth Group fell deeper into the red Wednesday as analysts turned bearish on the stock in the wake of its CEO's warning on political risk.
For exchange-traded fund (ETF) investors, the SPDR S&P 500 ETF (SPY) has been a dietary staple for many years. After posting $4.1 billion of outflows during the first quarter, SPY, the largest ETF that tracks the S&P 500, attracted more than $5.3 billion of inflows to start the second quarter. "It's the bellwether of all ETFs," said ETF Trends CEO Tom Lydon. "Because it's the biggest, the spreads between the bid and the ask are really, really tight," said Lydon.
U.S. stock indexes on Tuesday managed slight gains, led by a sharp advance in the financials sector, but limited by declines among some of the nation's largest health-care providers. The Dow Jones Industrial Average advanced 68 points, or 0.3%, at 26,452.45 (on a preliminary basis), the S&P 500 index edged up less than 0.1% to 2,907, as the Health Care Select Sector SPDR ETF, as measured by the health-care focused exchange-traded fund, declined by 2.1%, while the financial sector ETF, the Financial Select Sector SPDR ETF, climbed 1.4%, to lead the broad-market. UnitedHealth Group Inc. was in particular focus after Sen. Bernie Sanders called out the compensation of the CEO of the company's health-care unit UnitedHealthcare in a tweet. Shares ended down 4.1%, delivering a headwind to the Dow of which it is a component.
The healthcare space might have seen a sluggish year so far. But its valuation and near-term prospects make it a good space for investments right now.
Shares of UnitedHealth Group Inc. rallied 2.1% in premarket trade Tuesday, after the health insurer reported first-quarter earnings and revenue that beat expectations, and boosted its full-year profit outlook. Net income rose to $3.47 billion, or $3.56 a share, from $2.84 billion, or $2.87 a share, in the year-ago period. Excluding non-recurring items, adjusted EPS grew to $3.73 from $3.04, above the FactSet consensus of $3.60. Total revenue increased 9.3% to $60.31 billion, beating the FactSet consensus of $59.69 billion. Premiums rose 7.8% to $47.51 billion, topping the FactSet consensus of $47.44 billion and products grew 20.4% to $8.07 billion to beat expectations of $7.42 billion, while services increased 5.2% to $4.32 billion to miss expectations of $4.53 billion. The company's Optimum business grew revenue 11.9% to $26.4 billion. The company raised its guidance range for adjusted EPS to $14.50 to $14.75 from $14.40 to $14.70. UnitedHealth's stock has lost 7.6% year to date through Monday, while the SPDR Health Care Select Sector ETF has gained 4.2% and the Dow Jones Industrial Average has climbed 13.1%.
Once an outperformer last, providing investors a defensive play in 2018, the healthcare sector and related ETFs are now among the worst off in 2019 as the threat of regulations weigh on this market segment. The Health Care Select Sector SPDR ETF (XLV) reflects one of the poorest performers this year, advancing 4.2% year-to-date, compared to the 16.7% rise in the S&P 500. Furthermore, an earnings scare from Walgreens Boots Alliance, which cut its annual earnings forest amid a profit squeeze related to rebates from makers of generic drugs, along with CVS Health Corp.'s similar warnings in February, fueled concerns of potentially further weakness in the earnings season ahead.
Understanding what levels and trends are important can lead to successful trading.In financial markets, there are certain price levels that are more significant than others with regards to the amount of supply and demand that exists at them. In addition, prices are always doing one of three things. They are either going up, going down or staying the same. If you understand these dynamics it would help your trading or investing strategies.Don't waste your time with things like Gann Theory, Harmonic Patterns or Elliot Waves. These things are like Bigfoot and UFOs … fun to talk about but hardly credible. I can tell you that in the 20 years I spent as a hedge fund trader, not once did I ever hear a portfolio manager or trader talk about them. What do successful traders look at? Important levels and trends.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Long-Term Stocks for 2019 And Beyond I think that the S&P 500 will be neutral to slightly down this week. This is because many of the economic sectors that make up the S&P 500 are overbought and are at resistance levels.S&P 500 SPDR: The SPYs are overbought and near levels that were resistance in the past. There will probably be resistance around the $293 level because it is where the top was in September and October.If they head lower there will probably be support around $280. The $280 level is important because it was resistance during last March, June and again from October through December. It was also support throughout last July.Technology SPDR: The XLKs are overbought and testing important resistance. There is resistance around the $76 level because this is where the highs were last August through October. If they head lower there will probably be support around the $72 level because it was the top of the recent range.Financials SPDR: The XLFs hit resistance around the $27 level. They are slightly overbought. The levels between $27 and $27.50 have been the top of the range since November.Healthcare SPDR: The XLVs are at the bottom of the range that they have been in since February. The action over the past two days has been very weak. If they head lower there may be support around $86.50. It was the top in March and the bottom in October of 2018.Consumer Discretionary SPDR: The XLYs testing resistance around the October highs. They are very overbought, so there will probably be some consolidation or profit-taking. If they head lower there will probably be support around $111 because it was a resistance level from early December through March.Industrials SPDR: The XLIs broke their short-term downtrend and are consolidating around the $77 level. Longer-term, there may be resistance around the $80 level because it is where the highs were in January and September of 2018. There may be support again around $71 because it is where the lows were in late 2017 and the first half of 2018.Consumer Staples SPDR: The XLPs are testing resistance around the levels that were the highs at the end of last year. They are slightly overbought. They found support around the $50 level during the selloff at the end of December. This level was the low in 2016, and the top of the range throughout 2015.Consumer Staples SPDR Long-Term: The XLPs recently found support again around the very important $50 level. This level was the low in 2016, and the top of the range throughout 2015. It was also the top of the range during this past May.Energy SPDR: The XLEs seem to be breaking the resistance around the $66.50 level. This level has been resistance for the past two months. There is resistance around this level because it was support in early 2018.Energy SPDR Long-Term: The XLEs could be breaking resistance around the $66.50 level. There is resistance here because it was support a year ago. The $78 level is important long-term resistance. The levels around $55 are important long-term support.Materials SPDR: The XLBs are testing resistance around the $58 level. This level was the bottom of the range from last June through September. They are very overbought. The last two times that they were this overbought, in September and February, a selloff followed.Utilities SPDR: The XLUs broke their recent uptrend after becoming overbought and are consolidating. There is support around the $57 level because this is where the highs were in December. In September and then again in late December and early January they found support around the $52 level.As of this writing, Mark Putrino did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post S&P 500 Sector SPDR Preview: What to Watch This Week appeared first on InvestorPlace.
Whether the markets are roaring or experiencing doldrums, health care exchange-traded funds (ETFs) have been a paragon of reliability, but the sector could soon get tested with a forthcoming wave of government ...
Healthcare sector-specific ETFs took a blow Friday after the U.S. Congress threatened legislative action on rising costs of prescription drugs and the Trump administration challenged former President Barack ...