U.S. Movers: Cigna, General Electric, Humana, PVH, UnitedHealth, Tesla

Scott Peters
02 Apr, 2024
New York City

Stocks on Wall Street headed lower, and the tech-heavy Nasdaq Composite index declined more than 1%. 

Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services proposed a lower than expected rate increase in the financial year 2025. 

The S&P 500 index decreased 0.8% to 5,200.07, and the Nasdaq Composite fell 1.2% to 16,198.84. 

The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.

WTI crude oil increased $1.12 to $85.01 a barrel, and natural gas prices decreased 4 cents to $1.78 a thermal unit.

Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024. 

Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure. 

Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025. 

The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.

PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe. 

General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its energy business, GE Vernova, is scheduled to trade as a separate company starting Tuesday. 

General Electric spun off its medical devices business, GE Healthcare, in 2023. 

The industrial conglomerate's ill-focused expansion in financial services, powered by financial leverage, forced the company's breakup years later. 

Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern. 

Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago. 

Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter. 

Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.