CVS Shares Soar on Earnings, Leadership Change

22 minutes ago

CVS Health (CVS) shares surged after the pharmacy chain and healthcare company posted better-than-expected results and new CEO David Joyner made leadership changes as he moves to shake up the struggling firm.

The company reported third quarter earnings per share of $1.09, with revenue rising 6.3% to $95.4 billion.

Revenue was boosted by the Pharmacy & Wellness division, which saw sales up 12% to $32.4 billion, aided by higher prescription volume, Sales at the Health Care Benefits segment advanced some 25% to $33 billion on growth in Medicare and commercial product lines.

The company said Health Services unit revenue dropped 5.9%, chiefly because of the loss of a large client and continued pharmacy client price improvements. Reuters in January reported that Tyson Foods (TSN) replaced CVS Health with Rightway to manage employee drug benefits.

Joyner took over as CEO last month. CVS in a separate statement said former UnitedHealth Group (UNH) executive Steve Nelson will become head of its Aetna insurance arm, and Prem Shah, the current chief pharmacy officer and president of the Pharmacy & Consumer Wellness division, will become group president

CVS shares were up 10% in recent trading, but are still down more than 20% since the start of the year.

–Bill McColl

Small-Cap Stocks Jump After Trump Win

1 hour ago

Small-cap stocks rose broadly Wednesday, outperforming the leading market indexes in the wake of Donald Trump’s victory in the presidential election. 

The Russell 2000 (RUT) index of smaller companies was recently up more than 4%, outpacing gains seen in the S&P 500, Dow and Nasdaq. Several Russell companies posted large gains, with roughly a dozen recently up about 20% or more. 

Both the Russell and benchmark S&P are up this year, but today’s move narrows the S&P’s outperformance. It also has the Russell at year-to-date highs — and levels last seen in late 2021. 

The economic environment is generally seen as favorable to smaller companies, which are more sensitive to broader conditions. The Federal Reserve is also expected to cut rates again on Thursday; lower interest rates are generally understood to benefit companies that, like small caps, often carry more debt. 

Some analysts have also speculated that a Republican win could mean lower corporate tax rates that might particularly benefit smaller firms. 

–David Marino-Nachison

Solar Stocks Tumble Following Trump's Election Win

1 hr 34 min ago

Several solar stocks including First Solar (FSLR) and Enphase Energy (ENPH) slumped in early trading Wednesday after the presidential election was called in favor of former President Donald Trump.

SunRun (RUN), Plug Power (PLUG), and SolarEdge Technologies (SEDG) shares also declined, with the Invesco Solar (TAN) exchange-traded fund (ETF) down nearly 11%.

In the 16-page campaign platform listed on Trump's website, positions on energy policies include increasing oil, natural gas, and coal production, while reversing Biden administration policies favoring renewable energy.

Trump’s ability to reverse legislation like the Inflation Reduction Act, which studies have shown has accelerated the reduction of carbon dioxide emissions, will hinge on how Republicans fare in the remaining races yet to be decided in the House of Representatives. The party has secured a slight majority in the Senate, per the races already called by the Associated Press.

-Aaron McDade

Super Micro Computer Levels to Watch as Stock Plunges Again

2 hr 25 min ago

Shares in Super Micro Computer (SMCI) tumbled in early trading Wednesday after the troubled server maker provided preliminary fiscal first-quarter results late yesterday that came in below Wall Street expectations and said it’s unable to predict when it will file its delayed 2024 annual report.

The stock broke down below a falling wedge pattern late last month on the highest weekly volume since late August, suggesting selling conviction behind the move.

Investors should watch crucial support levels on Super Micro Computer's chart around $23, $12, and $10, while monitoring a key resistance area near $30.

The stock was down 23% at $21.38 in recent trading.

Read the full technical analysis piece here.

-Timothy Smith

What Donald Trump's Victory Means for the Economy

3 hr 39 min ago

Former president Donald Trump's victory in the 2024 presidential election sets the U.S. economy on a path of higher tariffs, lower taxes, and deregulation.

His victory has immediate and longer-term consequences for the U.S. economy. In the short run, the U.S. avoids the uncertainty and disruption that a delayed result could have caused.

In the longer run, Trump will have the chance to implement the vision laid out during his campaign, though his ability to do so will depend on which party controls the House of Representatives, and several of those races have yet to be called.

Read the full article here.

–Diccon Hyatt

Tesla Jumps as Musk Seen Winning Under Trump Presidency

4 hr 2 min ago

Shares of Tesla (TSLA) were up 12% in recent premarket trading Wednesday on investor bets that the electric vehicle (EV) maker run by Elon Musk will be a major beneficiary of Donald Trump’s return to the presidency.

Tesla CEO Musk, an outspoken Trump backer, is expected to become a prominent adviser to the president.

Tesla’s prospects under a Trump presidency are less clear cut, however. Trump isn’t a backer of clean energy, while Tesla has benefited from the Inflation Reduction Act of 2022, signed by President Joe Biden. Tesla also gained from 100% tariffs on Chinese EVs imposed by Biden that protected the EV maker from an onslaught of cars from the Asian nation—which is also a major market for the company.

Wedbush analyst Dan Ives, who has an “outperform” rating on the EV maker’s shares, said Sunday that the possibility of a trade war with China could weigh on the company. Ives did, however, note that a Trump presidency could mark a more welcoming environment for the company’s autonomy initiatives.

–Nisha Gopalan

Trump Media Stock Surges in Premarket Trading

5 hr 18 min ago

Shares of Trump Media and Technology Group (DJT) jumped in premarket trading with former President Donald Trump set to win re-election to the White House. 

The social-media company’s shares were recently trading at around $45, indicating an open more than 30% above Tuesday’s close. The move would extend a jump off September lows below $12 that has been marked by big swings in the company’s value.

The company, owner of the Truth Social platform, last night reported its latest quarterly financial results, turning in third-quarter revenue of $1 million and a net loss of a bit more than $19 million. In its press release, executives cited a “legion of retail investors” who own the shares. 

The company “continues to explore additional possibilities for growth such as potential mergers and acquisitions with companies that would benefit from Trump Media technology and branding, including in the realm of fintech,” CEO Devin Nunes said in a statement. 

Trump is majority owner of the company's shares.

–David Marino-Nachison

Major Indexes Poised to Skyrocket at Wednesday's Open

5 hr 49 min ago

Futures tied to the Dow Jones Industrial Average were up 3%.

S&P 500 futures were up 2.3%.

Nasdaq 100 futures were up 1.7%.

Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.