Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Overnight Markets: Health care shares boost Wall Street

Overnight Markets: Health care shares boost Wall Street

Wall Street advanced on Monday, with the S&P 500 hitting a record intraday high, after health care shares jumped on a smaller-than-forecast cut in Medicare rates and amid optimism about merger activity.

The Dow Jones industrial average rose 104 points or 0.64%, to close at 16,207. The S&P 500 gained 11 points or 0.62%, to end at 1,848, after rising to an intraday record of 1,859. The Nasdaq Composite added 30 points or 0.69%, to finish at 4,293.

Health care shares jumped after the government's proposed cuts to the private Medicare programme appeared to be less than it had forecast. Humana Inc (HUM.N) surged 10.6%, while UnitedHealth Group (UNH.N) shares rose 3%. Aetna Inc (AET.N) gained 2% after giving a 2014 earnings outlook.

The latest economic data showed the Chicago Fed National Activity index fell to -0.39 in January from 0.16 in December while financial data firm Markit's preliminary February reading on the services sector fell to 52.7 from 56.7.

In deal news, chipmaker RF Micro Devices Inc (RFMD.O) agreed to buy TriQuint Semiconductor Inc (TQNT.O) for about $1.6 billion. Men's Wearhouse Inc (MW.N) raised its cash tender offer for rival men's clothing retailer Jos. A. Bank Clothiers Inc (JOSB.O) to $63.50 per share from $57.50.

Shares of RF Micro shot up 21%, while TriQuint's stock surged 26.1%. Men's Wearhouse shares jumped 7.5%, while Jos. A. Bank's stock soared 9.1%.

Shares of eBay (EBAY.O) advanced 3.1%, helping lift the Nasdaq, after billionaire investor Carl Icahn called again for the spinoff of eBay's fast-growing PayPal payments business.

On the downside, Tenet Healthcare (THC.N) fell 3.8% after the bell following the release of its results.

In Asia, stocks rose on Tuesday in morning trade as telecommunication and health-care companies led gains.

The MSCI Asia Pacific Index climbed 0.8% to 138 as of 9:30 a.m. in Hong Kong. Japan’s Topix index today gained 1.1% and South Korea’s Kospi index rose 0.8%.

Australia’s S&P/ASX 200 advanced 0.1%, as did New Zealand’s NZX 50 Index. Hong Kong’s Hang Seng Index added 0.5% and China’s Shanghai Composite was little changed. Singapore’s Straits Times Index rose 0.2% and Taiwan’s Taiex Index advanced 0.4%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Wealth Manager on Twitter