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Insurance industry

Stocks Rally on Strong Services Data and Earnings Surprises

Strategic Insights

— 1 min read

The US stock market kicked off the day with a modestly negative start, but quickly rebounded after the Institute for Supply Management (ISM) released stronger-than-expected services data. The Dow Jones Industrial Average shot up 31 points, with health care stocks leading the charge. The Nasdaq also surged, with biotechs performing particularly well. Key takeaways from the market include:

Key Takeaways:

  • The Dow Jones Industrial Average rose 31 points, reaching near its session highs above 10,500.
  • Health care stocks were among the top performers, with the S&P 500 health care index gaining ground.
  • Biotechs fared well, with the Nasdaq rising about a third of a percent to 2,062.
  • Cigna Corporation (CI) shares skyrocketed, rising nearly 8% to $16.25, after the insurance giant raised its first quarter and full year earnings outlook.
  • Oxford Health Plans Inc. (OHP) shares surged 10% after reports surfaced that WellChoice Inc. (WC) is considering a bid for the company in an all-stock deal.
  • Philip Morris International Inc. (PM) reportedly nears a settlement with the European Union to fight cigarette smuggling, with the company expected to pay about $1 billion over 12 years.

Statistics:

  • The Dow Jones Industrial Average rose 31 points, reaching 10,531.
  • The S&P 500 health care index gained ground, with health care stocks leading the charge.
  • Biotechs performed well, with the Nasdaq rising about a third of a percent to 2,062.
  • Cigna Corporation (CI) shares rose nearly 8% to $16.25.
  • Oxford Health Plans Inc. (OHP) shares surged 10%.
  • Philip Morris International Inc. (PM) expected to pay about $1 billion over 12 years to fight cigarette smuggling.

Sources:

  • CNNfn
  • The Wall Street Journal
  • Merrill Lynch
  • 7-Eleven Inc.
  • Cigna Corporation
  • Oxford Health Plans Inc.
  • Philip Morris International Inc.
  • WellChoice Inc.

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