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Stryker Corp. announced Wednesday that it was raising its quarterly dividend by 11%, but that would keep the implied dividend yield on the medical technology company's stock below its peer group. The company said the new dividend of 57.5 cents a share, up from the latest dividend of 52 cents a share, would be payable Jan. 31 to shareholders of record on Dec. 31. Based on the current stock price, the new annual dividend rate would imply a dividend yield of 1.13%, compared with the yield on the SPDR Health Care Select Sector ETF of 1.50% and the implied yield for the S&P 500 of 1.91%, according to FactSet. The stock, which rose 0.4% in afternoon trading, has gained 18.4% over the past 12 months, while the health care ETF has tacked on 6.9% and the S&P 500 has advanced 15.5%.
Technically speaking, the S&P 500 has tagged its latest record peak as the Russell 2000 belatedly breaks to 52-week highs amid bullish market rotation, writes Michael Ashbaugh.
To teach a kid a lesson, keep it simple. Tell him in plain language what he did wrong, and give a simple punishment that fits the offense. Right? Throw the ball in the house and break something, you clean it up and work to replace it.
Eli Lilly & Co. said Wednesday that it will create 100 new jobs in Indianapolis as it invests $400 million in its manufacturing facilities at its Lilly Technology Center campus. The drug maker said its plans are a result of increased demand for its medicines and for the production of additional capacity for future medicines, and are helped by having more capital available as a result of tax reform. "These investments support our manufacturing capabilities in Indianapolis, including additional capacity and technology upgrades to our active ingredient, syringe filling, device assembly and packaging operations," said Myles O'Neill, president of manufacturing operations. "All of these projects support Lilly's investment in next generation manufacturing and feature high levels of automation, robotics, new technologies and advanced data analytics." The stock, which was still inactive in premarket trading, has slipped 0.5% year to date, while the SPDR Health Care Select Sector ETF has climbed 13.0% and the S&P 500 has advanced 24.5%.
Shares of Merck & Co. Inc. were up 0.3% in midday trading Tuesday, after the health care company said it will raise its quarterly dividend by 11%. The company will pay a dividend of 61 cents a share, up from 55 cents a share, on Jan. 8 to shareholders or record on Dec. 16. Based on the current stock price, the new annual dividend rate would imply a dividend yield of 2.89%, compared with the yield for the SPDR Health Care Select Sector ETF of 1.54% and the implied yield for the S&P 500 of 1.90%. Merck's stock has slipped 2.1% over the past three months, while the health care ETF has gained 6.7%, the S&P 500 has tacked on 6.7% and the Dow Jones Industrial Average has advanced 6.9%.
Shares of UnitedHealth Group Inc. rallied 2.2% in morning trading Monday, enough to pace the Dow Jones Industrial Average's gainers, after analyst David MacDonald at SunTrust Robinson Humphrey raised raised his price target to the highest on the Street. The managed care company's stock price gain was adding about 40 points to the Dow's price, while the Dow was down 11 points. MacDonald reiterated his buy rating on UnitedHealth's stock and raised his price target to $335 from $310, which makes him the most bullish of the 26 analysts surveyed by FactSet. "We have raised managed care price targets following the release of Senator Warren's plans to implement Medicare For All, which we think provide additional clarity and likely allays some concerns," MacDonald wrote in a note to clients. "We remain bullish on managed care and continue to view the companies as a key part of the healthcare cost solutions." Among price target increases, shares of WellCare Health Plans Inc. rose 2.4%, Humana Inc. tacked on 0.6%, Anthem Inc. hiked up 1.9%, Molina Healthcare Inc. tacked on 3.1% and CVS Health Inc. advanced 0.7% and Molina Healthcare Inc. rallied 3.1%.
A popular exchange-traded fund that tracks the health-care sector saw its best daily return in 10 months on Friday after the Trump administration proposed new rules aimed at making health-care prices more transparent. The SPDR Health Care Select Sector ETF posted a 2.1%, marking its best day since Jan. 4, when it rose 2.98%, according to FactSet data. The Trump administration proposed a rule that would require health insurers to disclose estimated out-of-pocket costs, including negotiated rates, to patients in advance of a procedure or office visit. It also finalized a rule requiring hospitals to make transparent the prices they charge patients starting in 2021. It's possible that the stocks gained on doubts on how the rules would be enforced. "While the Trump administration's new hospital price transparency requirement is quite sweeping, the enforcement of it is quite weak - a maximum fine of $300 per day," Kaiser Family Foundation executive Larry Levitt wrote on Twitter. Shares of UnitedHealth Group Inc. , which is the largest health insurer in the U.S., and Anthem Inc. each rose roughly 5%. Shares of Tenet Healthcare Corp. and HCA Healthcare Inc. , both large hospital operators, were up at least 2%. The S&P 500 is up 24.4% year-to-date.
Abbott Laboratories said Wednesday that Chief Executive Miles White will step down on March 31, 2020, after 21 years in the role. White, who joined Abbott in 1984, will remain executive chairman. The healthcare company said Robert Ford, who has been chief operating officer since October 2018 and a 23-year Abbott veteran, will succeed White as CEO. Abbott's stock slipped 0.3% in premarket trading. It has rallied 21.4% over the past 12 months through Tuesday, while the SPDR Health Care Select Sector ETF has gained 4.7% and the S&P 500 has advanced 13.6%.
Thermo Fisher Scientific Inc. announced Friday a new $2.5 billion stock repurchase program, with no expiration date. The analytical instruments and patient diagnostics company's new program replaces the current authorization, which had $500 million remaining. Based on Thursday's stock closing price of $293.54, the new program would allow for the repurchase of up to 8.5 million shares, or about 2.1% of the shares outstanding. The stock rose 0.3% in premarket trading. It has run up 31.2% year to date through Thursday, while the SPDR Health Care Select Sector ETF has gained 9.2% and the S&P 500 has rallied 23.1%.
Shares of Humana Inc. rallied 2.1% in premarket trading Wednesday, after the health care services company reported third-quarter profit and revenue that beat expectations, and provided an upbeat outlook. Net income was $888 million, or $5.14 a share, compared with $901 million, or $4.65 a share, in the year ago period. Excluding non-recurring items, adjusted EPS rose to $5.03 from $4.58, above the FactSet consensus of $4.58. Revenue rose to $16.24 billion from $14.21 billion, to beat the FactSet consensus of $16.15 billion, boosted by strength in its Medicare Advantage and healthcare services businesses. For 2019, Humana raised its adjusted EPS guidance to "approximately" $17.75, which is above the FactSet consensus of $17.64, and its expected individual Medicare Advantage membership growth outlook to about 530,000 members from the previous range of 480,000 to 500,000 members. The stock has gained 2.9% year to date through Tuesday, while the S&P 500 has rallied 22.7%.
Elizabeth Warren on Friday explains how she proposes to pay for her “Medicare for All” plan, after drawing criticism from her primary opponents for refusing to say whether her plan would raise taxes on the middle class.
The SPDR Healthcare Sector fund ETF (XLV) has been the best performing sector ETF in the last month with a 4.65% return. This earnings season has been relatively positive for Healthcare stocks.
AbbVie Inc. reported Friday a third-quarter adjusted profit and revenue that rose above expectations, helped by strength in its immunology and oncology business segments, and raised its earnings outlook. The stock slipped 0.4% in premarket trading. The company also raised its quarter dividend by 10% to $1.18 a share from $1.07 a share. Net income fell to $1.88 billion, or $1.26 a share, from $2.75 billion, or $1.81 a share, in the year-ago period. Excluding non-recurring items, such as an impairment charge, adjusted EPS rose to $2.33 from $2.14, above the FactSet consensus of $2.30. Revenue grew 3.0% to $8.48 billion, topping the FactSet consensus of $8.38 billion. Among AbbVie's best selling drugs, Humira revenue grew 3.7% to $4.94 billion to beat the FactSet consensus of $4.89 billion and Imbruvica revenue increased 29% to $1.26 billion, above expectations of $1.19 billion. AbbVie raised its 2019 adjusted EPS guidance range to $8.90 to $8.92 from $8.82 to $8.92. The new dividend will be payable Feb. 14 to shareholders of record on Jan. 15. Based on Thursday's stock closing price of $79.55, the new annual dividend rate implies a dividend yield of 5.93%, compared with the yield for the SPDR Health Care Select Sector ETF of 1.58% and the implied yield for the S&P 500 of 1.95%.
The opioid crisis is one of the biggest and most controversial stories in the past decade. Over the years, the U.S. advocated for more legalization of marijuana and has seen strong growth from the cannabis market. Yahoo Finance’s The Final Round break down the impact of marijuana and assess the opioid crisis.
It’s no secret that health care costs continue to rise, but new research from the Commonwealth Fund indicates that Americans are paying more for their premiums and deductibles than ever before. Yahoo Finance's Adriana Belmonte breaks the report down with Zack Guzman and Kristin Myers, along with Payne Capital Management Financial Advisor, Courtney Dominguez.
A new survey out from AMN Healthcare has found an alarming rate of burnout among nurses, with almost a quarter working two nursing jobs at a time. Yahoo Finance's Adriana Belmonte joins Zack Guzman and Sibile Marcellus, along with CampusReform.org Editor-In-Chief Cabot Phillips, to discuss.