Regarding the spread of coronavirus outbreaks that hammered US stocks, a corner of the market was confronted with another potential game-changing prospect: a nomination from Bernie Sanders.
The S&P 500 managed health index of health insurance stocks fell early on Monday morning by 7%, compared to a 3.5% drop for the total S&P 500.
Shares of industry bellwether UnitedHealth Group fell 7.6% and were the largest individual obstacle to the Dow Jones industrial average, while Centene shares fell by more than 10%.
Senator Sanders’ progressive agenda includes a national Medicare health plan for everyone.
The senator scored a dominant victory in the Nevada caucuses this weekend, adding momentum to his attempt to set the Democratic presidential nomination against President Donald Trump in the November general election.
The Vermont senator has written Medicare for All legislation that would essentially abolish private insurance in favor of a single government-managed plan that covers every American. The ambitious proposal would cost more than $ 10 trillion over a 10-year period, according to independent analyzes.
Senator Sanders’ progressive agenda includes a national Medicare for All health plan that may have had some influence on health care stocks in the market on Monday
Dow Jones U.S. Health Care Providers Index decreased by 5.45% and ended with 145 points
The S&P 500 suffered its worst day in two years on Monday, when an increase in coronavirus cases outside of China rattled investors worried about valuations following recent record highs
National anthem fell 5.84% on Monday. Many observers linked the performance of the stock market with increased fears of the corona virus outbreak
Shares of Centene Corp fell more than 10% during trading on Monday
UnitedHealth Group Inc fell by 7.6% and was a major brake on the Dow Jones
Shares fell by more than 1000 points on Monday as global concerns grew about the economic impact of the Corona virus that sent jitters through the market
Japanese crew (JAL) crew is seen at Los Angeles International Airport (LAX) with masks, to prevent corona virus infection, COVID-19
His dominant performance has surprised some market participants.
“It was not clear that it would be such a big win for him,” said Sarah James, a health worker at Piper Sandler, adding that the senator is still pushing his Medicare for All, anti-health insurance platform.
HEALTH CARE STOCK
Universal Health Services Inc.fell 1.10%
Quorum Health Corp.. fell 2%
Tenet Healthcare fell 4.33%
HCA Healthcare fell 5.3%
Community Health Systems fell more than 16%
CVS Health Corp. decreased by 5%
Anthem Inc. fell 5.8%
Humana Inc. fell 6.32%
Cigna Corp. decreased 7.59%
Molina Healthcare Inc. decreased 7.62%
UnitedHealth Group Inc. fell 7.7%
Centene Corp. fell 9.33%
Allergan PLC decreased by almost 1%
Merck & Co. Inc. decreased by slightly more than 1%
Sanofi decreased by almost 2%
Pfizer Inc. fell 2.73%
AstraZeneca PLC ADR fell almost 5%
DaVita Inc. fell 1.32%
Encompass Health Corp.fell nearly 3%
Fresenius Medical Care fell 3.2%
Magellan Health Inc. fell 3.34%
Cerner Corp. fell 3.48%
One medical fell slightly more than 7%
James said that most investors doubt that Sanders’ health reform plan will receive sufficient support to succeed in Congress and would be too disruptive to even be feasible.
“But you have two scenarios,” James said, “one, a recognition that the chance is not absolutely zero; or two, an extension of the uncertainty, neither of which is a great design. “
Shares from health insurance companies turned out to be volatile during the Democratic presidential race, sometimes falling because polls improved for Sanders and co-progressive candidate Elizabeth Warren.
On Monday, the shares also felt news that the corona virus was accelerating its spread outside of China, while Italy, South Korea, and Iran reported strong increases in business on Monday.
“If it were to become a pandemic in the United States, it would have a significant impact on managed care activities,” said David Heupel, health organist at Thrivent Investment Management.
“You would clearly have a huge increase in ER visits …” Heupel said. “There are a lot of expenses involved, so this would be a pretty significant increase in cost development. This plays a role directly in the managed care group. “
Among other shares of health insurers, Humana fell by 6.4%, while Anthem fell by 5.6%.
Shares from hospital operators were also under pressure, with HCA Healthcare 5.6% lower and Tenet Healthcare Corp with 4.6%.
Tenet Healthcare fell by 4.42% because the increase in Sanders seemed negative
Among other shares of health insurers, Humana Inc fell by 6.4%
Shares of hospital staff were also under pressure, with HCA Healthcare 5.6% lower