Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
https://www.profitableratecpm.com/h3thxini?key=b300c954a3ef8178481db9f902561915
Health actions were immersed on Tuesday, with wider performance in the larger market as the largest health insurer declined.
It SELECT SEENCE SEENCE SECTOR FUND SPDR (XLV) It fell by 2.5% at noon, and flirted with its lowest level in more than a year and a half. Which is compared to a 1% gain in the SPDR S&P 500 ETF TRUST (SPY)Highlighting the unusual divergence between healthcare and the larger market.
The catalyst was an impressive 16% fall of shares of UnitedHealth Group Inc. (UNH) After the CEO of the company resigned abruptly for personal reasons. Unitedhealth also removed its orientation for a whole year, citing the increasing medical costs that press the margins.
It is the last time for the health giant, which has lost 47% of its value since April 11, a dramatic fall for which it was a company of $ 550 million to its peak. From Tuesday, Unitedhealth was worth $ 289 billion, making it the third largest participation of XLV at 7%, just behind Eli Lilly & Co. (Lly) and Johnson & Johnson Inc. (JNJ).
But Unitedhealth’s problems are not the only head that faces the healthcare sector.
On Monday, President Donald Trump signed a executive order It aimed to lower medication prices, to pressure the new political pressure to pharmaceutical companies. XLV won 2.5% that day, although it was behind the Jump of 3.3% of SPY.
Health care, long viewed as a defensive play relatively isolated from economic changes, is beginning to seem vulnerable. During the sale of the market in April, when the trade war dragged SPY to 15% of the year to date, XLV remained relatively well, falling just over 3%.
But since then, healthcare has been abrupt. SPY has erased all its losses and has now increased almost 1% a year. XLV, on the contrary, has failed to recover -and is threatening to break the new lows.
Health actions have a double weight: the pressure of the prices policy affecting drugs and insurance companies, as well as a post-paid increase in the demand for medical services, especially among the elderly, increases the costs for insurers.
This combination is affecting the margins and feeling of investors, with more pain ahead.
