Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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 Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter