Closing Bell Movers: Health insurers rise on higher Medicare rate hike

Trump’s Tuesday night deadline to “take out” the “entire” country of Iran is looming while Iran’s top command – at least publicly – appears to be willing to see through his bluster, calling those threat “delusional”.  And yet, investment sentiment has held up through the headline risk for the fourth  straight session.    Markets continued to bounce on Monday following a long-weekend – the S&P 500 and Dow Industrials were up 0.4% while Nasdaq Composite was up 0.5%.  Consumer Staples was the best performing sector in the S&P 500, but other defensive areas such as Health Care and Utilities lagged the “growthier” areas of the market as Financials and Industrials outperformed.  Among the standout names in the benchmark, AppLovin Corporation (APP) was the best performing stock, with traders bottom-fishing on the stock’s 39% year-to-date decline.  In turn, this year’s winners such as Lumentum (LITE) and Ciena (CIEN) retreater from their recent highs.   In the evening hours, sentiment is somewhat more subdued – S&P e-minis is down 0.1%, Nasdaq 100 contract is off by 0.2%, while WTI Crude Oil is now breaking a pattern of inverse correlation with equities and also retreating below $113 per barrel.  

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Afterhours, health insurers were notably higher as CMS had finalizes its Medicare payment policy with a 2027 rate increase around 2.5% vs. the 0.1% target that spooked the industry back in January.  Broadcom (AVGO) was also firmer after announcing an expanded long-term supply agreement for Google’s future generations of Tensor Processing Units as well as a broader collaboration with Anthropic.

Check out this evening’s top movers from around Wall Street, compiled by The Fly.

HIGHER AFTER EARNINGS –

• Owlet (OWLT) up 9.2% after above-consensus Q1 pre-announcement

ALSO HIGHER –

• Organogenesis Holdings (ORGO) up 15.2% after announcing it has met primary endpoint in PuraPly study
• UnitedHealth (UNH) up 8.0%, Humana (HUM) up 10.7%, Centene (CNC) up 4.5%, Molina Healthcare (MOH) up 3.8%, Elevance Health (ELV) up 6.4%, CVS Health (CVS) up 6.4% after CMS finalizes Medicare payment policy at higher than expected rates
• Broadstone Net Lease, Inc. (BNL) up 3.4% after admission into S&P SmallCap 600 index
• Broadcom (AVGO) up 2.5%  after announcing expanded Google supply pact after announcing broader collaboration with Google and Anthropic
• PayPay (PAYP) up 1.7% after initiation at Buy at Goldman Sachs
• Casey’s General Stores (CASY) up 1.0% after admission into S&P 500 index
• MercadoLibre (MELI) up 0.7% after being upgraded to Buy at Jefferies

LOWER – 

• Mach Natural Resources LP (MNR) down 5.2% after equity offering