FED lets the market slide + CVS is sued by the US Department of Justice

FED cuts interest rates as expected

Nevertheless, the entire stock market is falling. Why did this happen even though the FED cut interest rates by 25 basis points as expected?

• It is rather due to what the FED has promised for next year.
• It was also reiterated that no interest rate cuts are planned or promised for next year as a result of Trump's upcoming economic policy.
• This has taken the fuel out of the market and especially stocks that benefit from interest rate cuts.
• The rocket-like rises of recent weeks could therefore come to an end for the time being.
• The FED continues to declare that it is not allowed to hold bitcoins.

CVS $CVS (+0,57 %)
is being sued

The U.S. Department of Justice is suing CVS for dispensing and billing illegal opioid prescriptions through state health insurance programs that allegedly contributed to the nationwide opioid epidemic. According to the indictment, CVS dispensed dangerous opioid quantities and combinations and premature refills from October 2013 to the present, in violation of the Controlled Substances Act.

Thursday: Stock market dates, economic data, quarterly figures

• ex-dividend of individual stocks

British American Tobacco GBP 0.59

Smith & Wesson Brands USD 0.13

• Quarterly figures / company dates USA / Asia

22:00 Fedex quarterly figures

22:15 Nike quarterly figures

• Quarterly figures / Company dates Europe

07:30 Douglas full year results

09:00 Douglas PK

11:00 Douglas Analyst Conference

• Economic data

08:00 DE: GfK Consumer Climate Indicator January FORECAST: -22.6 points previously: -23.3 points | Insolvencies January

08:45 FR: Business Climate Index December PROGNOSE: 96 previous: 97

13:00 UK: BoE, outcome and minutes of the Monetary Policy Council meeting December Bank Rate FORECAST: 4.75% previously: 4.75%

14:30 US: GDP (3rd release) 3Q annualized PROGNOSE: +2.9% yoy 2nd release: +2.8% yoy 2nd quarter: +3.0% yoy GDP deflator PROGNOSE: +1.9% yoy 2nd release: +1.9% yoy 2nd quarter: +2.5% yoy

14:30 US: Initial jobless claims (week) Forecast: 230,000 Previous: 242,000 | Philadelphia Fed Index December Forecast: 2.5 Previous: -5.5

16:00 US: Leading Indicators Index November FORECAST: -0.1% yoy previous: -0.4% yoy

16:00 US: Existing Home Sales November FORECAST: +2.5% yoy previous: +3.4% yoy

I'm out for now - loss compensation and possible reallocation to $AMD (-0,35 %) , $TMDX (+1,52 %) and $JMIA (+2,64 %)

The shares of $CVS (+0,57 %) , $UNH (+1,64 %) and other US companies in the healthcare sector drifted further downwards today.

The reason for this is the increasing speculation surrounding the plans of the orange-colored future head of state.

He plans to eliminate "the middleman". The middleman are dealers who help determine the final prices of drugs, but do not necessarily offer an add-on.

If the new administration really pushes this through, it will probably only be the beginning of a correction in the U.S. healthcare system.

What is your opinion on this?

https://www.bnnbloomberg.ca/business/2024/12/16/trump-middleman-remark-sinks-cvs-unitedhealth-cigna-shares/

Are there any chart technicians here who are currently $CVS (+0,57 %) currently?

I'm not familiar with it but saw on Instagram (mine at WLA?) that there is a support zone at ~USD50/€45 that you could use if you want to invest aggressively.

Any opinions on this?

$UNH (+1,64 %) UnitedHealth is at the center of a real tragedy right now: the United Healthcare CEO has been murdered and the news has caused quite an uproar - not only within the company, but also on the stock market. The shock is real, but for young investors like us, the question is: what do you do in moments like these? And this is where the legendary quote comes into play: "Invest when the blood is flowing in the streets." Yes, it sounds brutal, but it describes the idea of investing counter-cyclically - especially when the market is reacting irrationally.

What's going on right now?

UnitedHealth is a healthcare titan, with revenue streams from insurance (UnitedHealthcare) and services (Optum). In the last quarter, revenues increased by more than 9%, to over $100 billion. The numbers are strong, demand for healthcare services remains stable, but the short-term uncertainty - caused by this tragic incident - has put the stock on the defensive. Emotional market reactions could create the timing for entry opportunities.

Why could this be an opportunity?

UnitedHealth is more than just a health insurance company. Optum, the healthcare solutions subsidiary, is a growing powerhouse in telemedicine, chronic care and health data. These trends are long-term game changers. Despite the current crisis, the demand for these services remains consistently high - simply due to the ageing population in the USA.

Politics and the long-term outlook

There are challenges: The U.S. government is targeting reforms that could affect everything from drug prices to Medicare access. That means political pressure in the short term. But companies like UnitedHealth know how to adapt - they have the networks, technology and capital to stay ahead. Sure, it won't be a walk in the park, but in the long term, the healthcare sector is a growth market.

What is the competition doing?

Eli Lilly $LLY (+1,78 %) , Huma$HUM (+5,48 %) and CVS Health $CVS (+0,57 %) are not small players, and they are also expanding their market shares. But UnitedHealth has a particular strength: diversification. With insurance AND services, they protect themselves against fluctuations in one of the two segments. The focus on Optum gives them an innovative edge.

What can you take away as a young investor?

Many people are put off by shocks like these, but this could be exactly the moment for you to get involved. Of course there are risks, especially from regulatory uncertainty. But if a company's fundamentals are strong - and UnitedHealth's are - then it's worth taking a closer look.

In the long term, this crisis could turn out to be an opportunity. The only question is: do you have the courage when others shy away?

https://www.manager-magazin.de/unternehmen/brian-thompson-us-konzerne-ruesten-nach-attentat-auf-versicherungsmanager-auf-a-21de7826-f4c1-4b00-9051-98c753bddf7d

+++ News: Heated mood around US health insurers +++

The shares of well-known insurance companies such as $UNH (+1,64 %) but also those of competitors $ELV (-0,76 %)
$HUM (-2,08 %) and $CI (+0,21 %) have fallen surprisingly this week. Although the losses are limited, the reasons for this are more than just shocking.

As I reported earlier, the CEO of United Healthcare's insurance division was the victim of a targeted assassination. While the police are now investigating at full speed, the perpetrator is currently the target of downright hero worship on social media. The assassin is repeatedly equated with characters from pop culture such as Batman, Robin Hood or John Wick.

Insults against the victim and his family are also liked and shared thousands of times. It is not just the viciousness of the comments that is frightening - but the fact that, as is so often the case in such instances, the platforms simply let them stand.

Insurers' shares are currently falling because there are fears that there could be further murders of insurance employees. The management of the major insurance companies is alarmed and has hastily removed photos and other personal data of their "C-level executives" from their websites.

Commentary and classification: After the failed assassination attempt on Trump, I'm hardly surprised at the kind of people we're dealing with here. The same people who talk about democracy and human rights in every other sentence are the same people who are now calling for the assassination of their ideological opponents once again. Even a good ESG score doesn't help United Health against so much hatred.

From a purely shareholder perspective, this charged sentiment towards the banking and insurance sector is $JPM (+1,21 %) is of course a systemic risk when investing. However, these are not necessarily particularly controversial sectors. Retailers $WMT (-2,1 %) pharmaceuticals $PFE (+1,49 %)
$CVS (+0,57 %) consumer goods manufacturers $KVUE (-0,53 %)
$BATS (-0,24 %) defense companies $LMT (+0,94 %) etc. could soon find themselves in the crosshairs.

If you really want to be absolutely sure of being invested in a politically correct way, simply put your money in Northvolt and make a 90% loss. This also ensures that you can "eat the rich" can no longer be meant.

Rearranged in $WELS (+0,09 %)

Earnings next week

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