Diamonds and Dogs
Favorable news for the health insurers. CVS Health (CVS), Cigna (CI), Unitedhealth Group (UNH), Humana (HUM), and Anthem (ANTM) are all up over 3% after the Trump administration withdrew its sweeping proposal to eliminate rebates from government drug plans. The proposal was a centerpiece of the Trump administration's strategy to reduce drug prices, but the reality of implementing the plan may not have reduced drug prices and may have raised prices for some elderly.
Fastenal (FAST) in the slow lane. The industrial and construction supply distributor is down 5% to a five month low following earnings. Earnings actually missed expectations as revenues rose 7.9% to $1.37 billion, missing expectations as well. Many of Fastenal's small industry items are manufactured in China and are getting hit with trade tariffs. Fastenal has raised prices to compensation the tariffs, but the higher prices have not sufficient to also counter general inflation in the marketplace.
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