S&P 500: +5.74 (+0.61%)
There has been very little news on the individual company level. Economic data continues to improve, or at least get less bad, but the story line to watch these days are the Treasury sales. I won’t go to deep into the details – Cliff does a much better job covering the topic – but its hard to not mention that the sale of 30-year bonds drew the highest yield in almost two years.
Record government spending and massive debt issuance is increasing inflation concerns among investors, as is the rise in commodity prices.
Qualcomm (QCOM) -0.02%
Qualcomm raised its fiscal third quarter revenue and operating income guidance, which CEO Paul Jacobs said is based on stronger-than-expected demand for “more data-capable chipsets and increased licensing revenues driven part by advanced 3G network upgrades.”
UnitedHealth Group (UNH) -6.53%
UnitedHealth fell in response to an analyst downgrade at Oppenheimer & co., which cited margin declines in its Medicare business. According to the report, UnitedHealth’s bids for 2010 Medicare Advantage contracts assume the U.S. will lower reimbursement rates for doctors 21 percent.
The report argues that is unlikely to happen and leaves UnitedHealth vulnerable to higher costs if Congress rescinds the cuts. The analyst goes on to estimate that the mispricing may cost the company 4 percent, or $780 million, in operating earnings.
WellPoint (WLP) also traded lower for most of the day, but finished near positive territory.
Quick Hits
- Fed Is Slowing Pace of Treasury Purchases as Traders Pine for More Buying
- Wal-Mart Leads Corporate Credit Rally on Jobs, Sales Data
Peter J. Lazaroff
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