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health care giant UnitedHealth
stock tumbled toward a 52-week low on Thursday, leading managed care stocks lower. But hospital, drugstore and even biotech stocks sold off as well. Bernie Sanders revving up the Democrats' "Medicare for All" push seemed to cause a chill. Continued concerns about pharmacy benefit manager business lines also remain a headwind for the medical sector.UnitedHealth Group (UNH) took a price target cut. CVS Health (CVS), a drugstore, PBM and health insurer, got new analyst coverage saying it's no bargain — despite being near a six-year low.XThe sector sell-off came despite a ho-hum day for the Dow Jones and broader stock market. The selling seemed to reflect investors coming to terms with longer-term political risk.Sanders renewed his 2016 campaign drive for Medicare for all on Wednesday, saying he would kill the filibuster to get it passed into law. Still, the odds of any such legislation passing within the next few years look minuscule. Democrats would have to win the White House and Senate, then overcome internal opposition. Other Democratic presidential candidates are talking about a public option that lets people under 65 buy into Medicare. They also want to allow drug imports from Canada."I think the public option would be something you could get done immediately," Minnesota Sen. Amy Klobuchar, a Democratic presidential long shot said. Even that possibility may not sit well with investors.Also Wednesday, a Senate panel grilled executives from UnitedHealth, CVS Health and Cigna (CI) about their prescription benefit management units' cut of drug pricing. "The group was able to counter the negative sentiment with constructive responses," wrote Cantor Fitzgerald analyst Steven Halper, though "this story is far from over."The Trump administration earlier this year changed rules to severely limit PBMs' drug rebates unless they are passed on to consumers.UnitedHealth Stock Hit Ahead Of EarningsUnitedHealth stock sank 4.3% to 235.42, just avoiding its 52-week low set at the late December stock market bottom. The relative strength line, which tracks a stock's performance vs. the S&P 500 index, did hit a 52-week low.UnitedHealth stock fell below a prior sell-off in early March. That came after 100 House Democrats backed a far-reaching Medicaid for All bill that would do away with commercial insurance for 160 million.BMO lowered its UnitedHealth stock price target to 292 from 310 ahead of the health insurer's earnings next Tuesday.Health Care RoutedOther managed care stocks sold off. Anthem (ANTM) lost 4.1%, Centene (CNC) 3.7% and Cigna stock 2.5%.Meanwhile, CVS stock fell 2.2% as BMO Financial said that "near-term risks outweigh low valuation" for investors.Among hospitals, Tenet Healthcare (THC) lost 3.7% and HCA Healthcare (HCA) 2.8%.Among biotechs, Alexion Pharmaceuticals (ALXN) slipped 2.7% and Incyte (INCY) 2.6%.Overall, the Dow Jones closed just below the flatline, down less than 0.1%. The S&P 500 was barely in the green, while the Nasdaq
composite lost 0.2%.YOU MIGHT ALSO LIKE:Regulatory Threats Higher Than Ever For Facebook, Amazon, GoogleIBD Stock Of The Day: GoDaddy Pushes Into E-CommerceMarijuana Stocks To Buy And WatchWant Weekly Tips On Investing? Get The 'How To Invest' NewsletterGet Notifications For Live IBD Videos By Subscribing On YouTubeThe post UnitedHealth Leads Health Care Sick List On 'Medicare For All' Fears appeared first on Investor's Business Daily. Weiter zum vollständigen Artikel bei "Investors Business Daily"
Quelle: Investors Business Daily