Market/Sector Trends
11/4/2009 11:39 AM ET
(RTTNews) -
After seeing gains in each of the two previous sessions, health insurance stocks are seeing further upside in morning trading on Wednesday. With the gains, health insurance stocks are partly offsetting the losses posted in late September after being stuck in a range for the bulk of October.
The strength in the health insurance sector is reflected by the 5.7 percent gain currently being shown by the Morgan Stanley Healthcare Payor Index. At its high for the session, the index was at its best intraday level in well over a month.
The advance by the healthcare sector come as Republican victories in gubernatorial elections in Virginia and New Jersey have generated optimism that more liberal healthcare reforms will face increased opposition on Capitol Hill.
Conservative Republican Bob McDonnell's won in the Virginia governor's race over Democrat R. Creigh Deeds and moderate Republican Chris Christie was able to beat New Jersey Gov. Jon Corzine.
WellCare Health Plans (WCG) is one of the best performers in the health insurance sector, climbing by 9.5 percent. Earlier in the session, WellCare reached its best intraday price in over a year, but it has given back some ground since then.
The strong upward move comes after WellCare reported adjusted third-quarter net income of $0.82 per share, topping Wall Street estimates of $0.67 per share. WellCare also reported total revenues of $1.67 billion, exceeding analysts' forecasts for revenues of $1.66 billion.
Health Net (HNT) and Aetna (AET) are also moving notably higher, posting gains of 7.8 percent and 6.5 percent, respectively. Health Net jumped to a six month intraday high earlier, while Aetna reached its best intraday price in over a month.
Shares of Cigna (CI), Coventry Health Care (CVH), Molina Healthcare (MOH) and UnitedHealth Group (UNH) are also on the rise, further reflecting the strength in the sector.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
|
|