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Omar Venerio
Omar Venerio
Articles (1736) 

Tuesday Morning Market Highlights

Markets up, Humana boosts its 2020 guidance

US Markets

U.S. stocks were in the green on Tuesday morning ahead of the Election Day with the Dow Jones up more than 500 points. The Dow gained 2.13% to 27,498, the S&P 500 index jumped 1.80% to 3,369 and the Nasdaq Composite Index was up 1.50% to 11,127.

Gainers

• Mohawk Industries Inc (NYSE:MHK) +2%

• National Oilwell Varco Inc (NYSE:NOV) +2.7%

• United Rentals Inc (NYSE:URI) +2.6%

• Loews Corp (NYSE:L) +1.7%

• Halliburton Co (NYSE:HAL) +3.1%

Losers

• The Mosaic Company (NYSE:MOS) -13.9%

• Leggett & Platt, Incorporated (NYSE:LEG) -5.9%

Global Markets

The main European stock markets traded in the green. The U.K.'s FTSE 100 gained 1.91%, France's CAC 40 inched up 1.88%, Germany's Dax was increased 1.67% and Spain's Ibex 35 jumped 1.64%.

In Asia, Japan's Nikkei 225 gained 1.39%, India's BSE Sensex advanced 1.27%, Hong Kong's Hang Seng rose 1.96% and China's Shanghai Composite was up 1.42%.

Humana releases earnings report

Shares of Humana Inc. (NYSE:HUM) gained 2% on Tuesday morning after the company announced financial results for its third quarter of fiscal 2020. It posted earnings of $3.08 per share, beating analysts' estimates by 28 cents, on revenue of $18.82 billion, which grew 15.9% year-over-year and also beat expectations by $230 million.

CEO Bruce D. Broussard had the following to say:

"We continue to see more Medicare beneficiaries choosing Medicare Advantage (MA) plans over Medicare-Fee-For-Service due to MA's ever-increasing value proposition. What's driving this strong value is the fact that plans must constantly innovate to stay competitive as Medicare beneficiaries have the freedom to choose a plan that's affordable for them and that suits their lifestyle needs. For example, about 60 percent of our members are in $0 premium plans and enjoy supplemental benefits not included in Medicare-Fee-For-Service, like dental, vision, hearing, access to healthy foods, and gym memberships."

The company boosted full year expected individual Medicare Advantage membership growth to approximately 375,000 members. Previous estimation was in the range of 330,000 to 360,000 members, totaling an expected year-over-year growth of 10%.

Looking ahead to full fiscal year 2020, the company expects earnings per share to be in the range of $24.70 to $24.95, compared to the previous range of $23.74 to $24.24, while adjusted EPS is expected to be between $18.50 and $18.75 versus the previous range of $18.25 to $18.75.

At the end of June, Barrow, Hanley, Mewhinney & Strauss initiated a new position in the stock with 141,932 shares, while Chris Davis (Trades, Portfolio) cut his investment by 13% to 63,827 shares.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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