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Stock Market & Financial Investment News

News Breaks
February 28, 2013
15:24 EDTCNCCentene received notice of intent to award California Medicaid contract
Centene Corporation announced that its subsidiary, California Health and Wellness Plan, has been notified by the California Department of Health Care Services of its intent to award a contract to serve Medicaid beneficiaries in 18 counties, pending regulatory approval. Under the contract, California Health and Wellness Plan will serve members under the state's Medi-Cal Managed Care Rural Expansion program. The expansion program covers members eligible for Temporary Assistance for Needy Families and Children's Health Insurance Program, as well as other populations, the company said.
News For CNC From The Last 14 Days
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July 2, 2015
16:37 EDTCNCStocks end holiday shortened week lower after Greece defaults
Stocks on Wall Street began with a slide on Monday, but not as precipitous a drop as may have been feared, after Greece shut down its banks and announced it will put the concession deal offered by its creditors, and essentially its continued inclusion in the eurozone, up for a popular vote. The major averages regained a bit of their losses in the next two sessions as news regarding the Greek situation continued to dominate the headlines. U.S. markets are closed on Friday in observance of Independence Day, but investors will be returning to big news, for better or worse, following the referendum that is scheduled to occur on July 5. MACRO NEWS: In the U.S., the monthly nonfarm payrolls report showed the addition of 223,000 jobs, versus expectations for 233,000 jobs to have been added last month. The unemployment rate fell to 5.3% from the prior month’s 5.5% rate. Factory orders fell 1.0% in May, which was larger than the expected 0.5% decline. The Conference Board's consumer confidence index rose to 101.4 in June from a revised 94.6 reading for May, beating expectations for a reading of 97.4. Markit's manufacturing purchasing managers' index for June came in at 53.6, narrowly above the 53.4 forecast. ISM's manufacturing index rose to 53.5 in June, topping May's 52.8 reading and the 53.2 consensus forecast. Construction spending rose 0.8% in May, versus the expected growth of 0.5%. Additionally, Puerto Rico's Governor Alejandro Garcia Padilla, in an interview published by the New York Times, warned that the commonwealth's "debt is not payable" and a report warned that the territory's crisis was even worse than previously thought... In Europe, Greek Prime Minister Alexis Tsipras called a surprise referendum on the terms put forth by the country’s creditors in exchange for additional rescue funds and the country shut down its banks until after this Sunday's vote. Standard & Poor's Ratings lowered its sovereign credit ratings on Greece, stating that the probability of the country exiting the eurozone is now about 50%, in its view. Greece officially missed its $1.7B payment to the International Monetary Fund, as expected. Greece's government requested a third bailout from the eurozone, but the request was dismissed by European officials. Eurogroup president Jeroen Dijsselbloem said Wednesday that he saw no need for further talks on Greece at that point as he awaits the result of its referendum... In China, the People’s Bank cut the one-year lending rate by 25 basis points to 4.85% and lowered the amount of reserves certain banks are required to hold by 50 basis points, but the same day the Shanghai Composite entered bear market territory, meaning the index was down more than 20% from its peak in mid-June. Chinese manufacturing PMIs came in short of expectations, as the HSBC/Markit PMI slipped to a final 49.4 in June from the flash reading of 49.6, while the government's official manufacturing PMI fell to 50.1 in June from 50.9 in May. COMPANY NEWS: Shares of BP (BP) advanced after the oil major announced it has reached agreements in principle to settle all U.S. federal and state claims arising from the Deepwater Horizon accident and spill in 2010. BP said it will pay up to $18.7B to settle the claims and that the expected impact of its agreements would be to increase the cumulative pre-tax charge associated with the accident and spill by around $10B from $43.8B at the end of the first quarter... In a blockbuster deal in the insurance industry, ACE Limited (ACE) agreed to acquire Chubb (CB) in a cash and stock transaction valued at over $28B. The combination will create the number one global Property and Casualty insurance company by P&C underwriting income and the number two U.S. public P&C insurer by market cap. Elsewhere on the M&A front, managed healthcare company Centene (CNC) announced a definitive agreement to acquire managed health care services rival Health Net (HNT) in a cash and stock deal valued at approximately $6.8B, including the assumption of approximately $500M of debt. Additionally, Willis Group (WSH) agreed to combine in an all-stock merger of equals with Towers Watson (TW) and Chambers Street Properties (CSG) announced a merger agreement with Gramercy Property Trust (GPT)... U.S. airline stocks dropped after the Associated Press reported that the Justice Department is investigating potential "unlawful coordination" between companies attempting to artificially limit growth to keep fares high... Juno Therapeutics (JUNO) advanced after the company announced a ten-year global collaboration for the development and commercialization of immunotherapies with Celgene (CELG). As part of the deal, Celgene will make an initial payment of approximately $1B, which includes the purchase of approximately 9.1M shares of Juno stock at $93 per share... Pentair (PNR) gained after Nelson Peltz's Trian Group confirmed it has taken a 7.24% stake. Trian urged the company to consider acquisitions and other industrial parts makers, including SPX Corp. (SPW), Flowserve (FLS), Xylem (XYL) and Colfax (CFX), also advanced following the activist's disclosure of its position... In a ruling with implications for coal miners and electric utilities, the Supreme Court overturned the EPA's Mercury Admissions and Toxic Standard, or MATS, rule, stating that the regulator did not properly take into account the costs to utilities and others in the sector in implementing a national standard for the reduction of power plant emissions of mercury and other air toxins... General Motors (GM) reported its U.S. sales fell 3% in June compared to the same month of last year, while Ford (F) said its sales grew 1.6% last month compared to last year. FCA US, the parent of the Chrysler and Jeep brands, reported U.S. sales increased 8% compared with sales in June 2014... Bond insurers MBIA (MBI) and Assured Guaranty (AGO) declined amid the worries about the debt situation in Puerto Rico. INDEXES: The Dow fell about 1.25% to close at 17,730.11, the Nasdaq declined about 1.43% to close at 5,009.21, and the S&P 500 dropped about 1.22% to close at 2,076.78.
16:28 EDTCNCOn The Fly: Top stock stories for Thursday
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13:09 EDTCNCOn The Fly: Top stock stories at midday
Stocks on Wall Street began the session in positive territory but have moved into negative ground in early afternoon trading. The nonfarm payrolls report showed that job growth slowed in June and the unemployment rate ticked down as many left the labor force. The news flow is expected to slow with investors preparing for the Independence Day weekend and the trading has been listless as is typical in the trading session prior to a long leave. However, U.S. investors will be returning to big news, either positive or negative, on Monday following the Greek referendum that is scheduled to occur on July 5. ECONOMIC EVENTS: In the U.S., the monthly nonfarm payrolls report showed the addition of 223,000 jobs, versus expectations for 233,000 jobs to have been added last month. The unemployment rate fell to 5.3% from the prior month’s 5.5% rate. Initial jobless claims rose 10,000 to 281,000 in the week ended June 27, versus expectations for 270,000 first-time claims. Factory orders fell 1.0% in May, which was larger than the expected 0.5% decline. In Europe, Greek finance minister Yanis Varoufakis said he would resign from his post if the nation's referendum on bailout terms results in a "Yes" vote. COMPANY NEWS: Shares of BP (BP) trading in New York rose more than 5% after the oil major announced it has reached agreements in principle to settle all U.S. federal and state claims arising from the Deepwater Horizon accident and spill in 2010. BP said it will pay up to $18.7B to settle the claims and that the expected impact of its agreements would be to increase the cumulative pre-tax charge associated with the accident and spill by around $10B from $43.8B at the end of the first quarter... Managed healthcare company Centene (CNC) announced a definitive agreement to acquire managed health care services rival Health Net (HNT) in a cash and stock deal valued at approximately $6.8B, including the assumption of approximately $500M of debt. Under the terms of the deal, Health Net shareholders would receive 0.622 shares of Centene common stock and $28.25 in cash for each share of Health Net common stock, which is equal to implied consideration of $78.57 per share based on Centene’s closing stock price on July 1. MAJOR MOVERS: Among the notable gainers was Intel (INTC), which was 1.5% higher in afternoon trading after the company announced this morning that President Renee James informed the board that she will be stepping down to pursue an external CEO role. Also higher was Xoom (XOOM), which gained 22% after eBay's (EBAY) soon-to-be split PayPal (PYPL) unit announced last night that it has agreed to acquire the digital money transfer provider for $25 per share in cash. Among the noteworthy losers was Western Union (WU), which slipped about 6% after Evercore ISI downgraded the stock to Hold and JMP Securities said that PayPal's deal for Xoom will negatively affect Western Union's prices over the longer term. Also lower were shares of Triple-S Management (GTS), which fell xxx% after Wells Fargo downgraded the stock to Underperform, the firm's equivalent to a "sell" rating, saying Puerto Rico's "crumbling" economy puts the company's earnings at risk. INDEXES: Near midday, the Dow was down 54.98, or 0.31%, to 17,702.93, the Nasdaq was down 20.30, or 0.4%, to 4,992.83, and the S&P 500 was down 5.11, or 0.25%, to 2,072.31.
12:00 EDTCNCCognizant ability to offset Health Net loss a positive, says Wells Fargo
Wells Fargo notes that despite the loss of $100M in revenue in the second half of 2015 from the Health Net (HNT) master services agreement being put on hold during the Centene (CNC) merger review process, Cognizant (CTSH) reaffirmed its outlook today for 2015. Wells views the company's ability to offset the contract loss as a positive and says it remains comfortable with an Outperform rating on the stock.
09:36 EDTCNCCognizant backs FY15 EPS view of at least $2.93, consensus $2.97
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09:33 EDTCNCCognizant reaffirms 2015 view after Health Net agrees to be bought by Centene
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09:15 EDTCNCOn The Fly: Pre-market Movers
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08:35 EDTCNCLeerink says UnitedHealth may counter bid for Health Net
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08:04 EDTCNCHealth Net volatility low into Centene acquiring in deal valued at about $6.8B
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07:58 EDTCNCCentene volatility low into acquiring Health Net in deal valued at about $6.8B
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07:32 EDTCNCCentene & Health Net to host joint conference call
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07:05 EDTCNCCentene to acquire Health Net in deal valued at about $6.8B
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07:02 EDTCNCCentene to acquire Health Net for implied consideration of $78.57 per share
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07:01 EDTCNCCentene, Health Net to combine in transaction valued at about $6.8B
June 25, 2015
11:06 EDTCNCHospitals, insurers climb after Supreme Court rules on ACA subsidies
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10:11 EDTCNCACA tax subsidies upheld by Supreme Court
The decision of the Fourth Circuit was affirmed in King v. Burwell by a vote of 6 to 3, according to multiple media reports. The Supreme Court upholding the lower court ruling means that individuals who get health insurance through an exchange established by the federal government will be eligible for tax subsidies in all 50 states. Publicly traded companies in the health insurance space include Aetna (AET), Anthem (ANTM), Centene (CNC), Cigna (CI), Health Net (HNT), Humana (HUM), Molina Healthcare (MOH), UnitedHealth (UNH) and WellCare (WCG). Publicly traded companies in the hospital space include Community Health (CYH), HCA Holdings (HCA), LifePoint (LPNT), Tenet (THC) and Universal Health (UHS).
June 22, 2015
06:37 EDTCNCHealth insurers may change policies based on King v. Burwell ruling, NYT says
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June 19, 2015
10:09 EDTCNCFly Watch: Supreme Court may release key ACA decision soon
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