Humana Levels to Watch After Report of Cigna Merger Talks
36 minutes ago
Humana (HUM) shares rose Monday after Bloomberg reported late Friday that Cigna (CI) has resumed its efforts to merge with the struggling health insurer.
The stock broke down below a descending channel late last month, but promptly reversed course the following week to reclaim the pattern’s lower trendline, potentially indicating a bear trap.
The stock was up 0.3% at $267.95 in recent trading, after rising to above $275 early in the session.
Investors should watch key overhead levels on Humana’s chart around $300, $370 and $450, while also watching a crucial area of support near $230.
Read the full technical analysis piece here.
Kenvue Stock Surges on Report of Starboard Stake
59 minutes ago
Shares of Kenvue (KVUE) took off Monday morning on reports that activist investor Starboard Value has taken a large stake in the consumer health products maker.
The Wall Street Journal and Reuters report it’s unclear how big of an investment the hedge fund has made in the maker of Tylenol, Band-Aids, and Listerine.
The Journal, which first reported the news, said that Starboard has taken a “sizable stake” and wants the company to make changes to boost its stock price, while Reuters pointed out that the share price has fallen 18% since Kenvue began trading last year after it was spun off of Johnson & Johnson (JNJ).
The Journal noted that Starboard founder and Chief Executive Officer (CEO) Jeff Smith is expected to outline the firm’s plans for Kenvue at tomorrow’s 13D Monitor Active-Passive Investor Summit in New York.
Reuters added that Smith will also speak at the conference about Starboard’s plans for Pfizer (PFE) after it recently made an approximately $1 billion stake in the drug maker.
Kenvue shares were up about 6% in recent trading,
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Spirit Airlines Soars as Debt Deadline Extended
1 hr 45 min ago
Spirit Airlines (SAVE) shares jumped in early trading Monday after the discount carrier said it has extended the deadline on a debt refinancing plan with credit card processors Visa (V) and Mastercard (MA).
The deadline for the refinancing originally was extended from September to Monday, but Spirit said in a filing late Friday that the deadline has been extended again to Dec. 23. Spirit also said that it has borrowed the entire $300 million available from a revolving credit line, and expects to end the year with at least $1 billion in liquidity.
Shares of the discount airline were up 38% at $2.02 in early trading but have lost nearly 90% of their value since the start of the year.
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Legal challenges that eventually led Spirit and JetBlue Airways (JBLU) to abandon their attempted merger; cost-cutting maneuvers like delaying jet deliveries and furloughing pilots amid warnings of lower revenue; and a recent report that Spirit is considering filing for bankruptcy have sent the stock plummeting this year.
Gold Continues to Glitter
2 hr 54 min ago
Gold (GOLD) is on the rise again early Monday, trading at record-high levels.
The yellow metal, which has posted four consecutive days in the green through Friday’s close, has received a boost in recent trading sessions from escalating tensions in the Middle East, uncertainties surrounding the upcoming U.S. presidential election, and expectations of further interest rate cuts before the end of the year.
Typically, investors flock to the safe-haven asset during periods of geopolitical uncertainty, while lower rates reduce the opportunity cost of holding the metal, making it more attractive as a store of value.
The relative strength index confirms bullish price momentum in the commodity, but also cautions of overbought conditions that increases the chances of short-term pullbacks.
Investors should monitor a bars pattern upside target on the gold chart around $2,890 an ounce, while also watching important support areas at $2,605, $2,530, and $2,430.
Read the full technical analysis piece here.
Futures Point to Lower Open for Major Indexes
3 hr 36 min ago
Futures tied to the Dow Jones Industrial Average were down 0.2%.
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S&P 500 futures were off 0.3%.
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Nasdaq 100 futures were down 0.6%.
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