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Nasdaq Composite Falls 1.3% as Tech Stocks Struggle
S&P 500 slipped for the second consecutive day while losses on the tech-dominant Nasdaq Composite accelerated, with the index finishing lower by 1.3% on Thursday. Technology was by far the worst-performing sector in the benchmark S&P as AI buildout theme was thumped by a Financial Times report, stating that OpenAI's annualized revenues were closer to $50B at the end of September - well below the $70B figure previously circulated. Micron, Sandisk, Intel, Broadcom, Seagate, AMDand Oraclewere among the 20 worst stocks in the S&P 500, with losses of at least 4%. Meanwhile, software and IT services stocks such as Accentureand Gartner- names viewed to be most exposed to AI disruption - rallied by at least 5%.In the opening hour of the evening session, S&P e-minis and Nasdaq 100 contracts are up a decimal. In commodities, WTI Crude Oil was off the highs but still above $91 per barrel. Energy prices rallied sharply this morning on reports that U.S. may conduct heavy strikes on Iran before the US midterm elections.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Park Aerospace Corp.up 2.7%Oil-Dri Corporation of Americaup 1.0%ALSO HIGHER -XORTX Therapeuticsup 23.9% as company outlines anticipated clinical trial application for XRx-026Humanaup 12.7%, Clover Healthup 10.9% after CMS published 2027 MA - Medicare Part C - and Part D Star RatingsGinkgo Bioworks Holdings, Inc.up 1.0% after announcing it will provide autonomous lab access to NSF X-Labs researchersLOWER -AT&Tdown 6.6%, T-Mobiledown 6.6%, Verizondown 6.2% following announcement by SpaceXthat it has acquired a nationwide low-band spectrum license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band.Alignment Healthcaredown 23.1%, CVS Healthdown 3.1%, Cignadown 1.8%, Elevance Healthdown 1.6% after CMS published 2027 MA - Medicare Part C - and Part D Star RatingsBraemar Hotels & Resortsdown 3.3% after FY27 guidanceAmerican Expressdown 1.8% after announcing consent to Federal Reserve and OCC compliance orders
Cigna FY26 Revenue Expected at About $280B
Backs FY26: Consolidated adjusted revenues about $280B, consensus $286.76B; Evernorth Health Services pre-tax adjusted income from operations of at least $6.90B; Cigna Healthcare pre-tax adjusted income from operations of at least $4.55B; Medical care ratio of 83.7% to 84.7%.
Targets Adjusted: 10%-14% Adjusted EPS CAGR
Targets: 10%-14% adjusted EPS CAGR; About $50B in cumulative operating cash flow.
The Cigna Group Launches $3B Modernization Initiative
As part of its "Lead to One" vision, The Cigna Group is announcing a new $3B multi-year modernization and productivity initiative to support growth and financial performance. The initiatives will focus on modernizing processes and streamlining workflows, empowering colleagues with AI-enabled insights and tools to drive greater effectiveness, along with driving disciplined supplier and vendor management.
Lockheed Martin Awarded $1.2 Billion Army Contract
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.ACA ENROLLMENT:The Centers for Medicare & Medicaid Servicesit is taking "aggressive, sweeping actions within the Federal Marketplace - canceling approximately 315,000 unauthorized enrollments covering more than 760,000 individuals, which is expected to result in a return of roughly $2.2 billion in taxpayer-funded subsidies." CMS has established a Federally-facilitated Exchange anti-fraud coordination group that brings together leadership from across CMS and the U.S. Department of Health and Human Services to drive a unified, sustained response to fraud in the Federal Marketplace, CMS stated. "We are shutting down unauthorized Marketplace enrollments and returning approximately $2.2 billion in taxpayer-funded subsidies. CMS is strengthening safeguards, pursuing bad actors, and holding agents and brokers accountable when they break the rules. Under President Trump, HHS will protect Americans' health coverage and ensure taxpayer dollars reach the people they are intended to serve," said HHS Secretary Robert F. Kennedy, Jr. Publicly traded companies in the health insurance space include CVS Health, Centene, Cigna, Elevance Health, Humana, Molina Healthcare, UnitedHealthand HCA Healthcare.STATE DINNER:General MotorsCEO Mary Barra is expected to attend President Donald Trump's state dinner at the White House on Thursday for Chinese President Xi Jinping, Reuters' Nora Eckert, Kalea Hall, and David Shepardson. StellantisCEO Antonio Filosa will not attend the dinner, according to sources. Others in attendance are expected to include PfizerCEO Albert Bourla, Amazon'sJeff Bezos, AlphabetCEO Sundar Pichai, OpenAI's Sam Altman, former AppleCEO Tim Cook, Tesla'sElon Musk, NvidiaCEO Jensen Huang, Dell'sMichael Dell, JPMorgan'sJamie Dimon, and CitigroupCEO Jane Fraser.U.S. ARMY CONTRACT:The U.S. Army has awarded Lockheed Martinan indefinite delivery, indefinite quantity contract worth up to $1.2B to produce Increment 2 of the Precision Strike Missile, further strengthening the nation's Arsenal of Freedom after a second flight test demonstrated the missile's ability to engage moving maritime targets. The IDIQ covers initial procurement and future orders of PrSM Increment 2 missiles, follow-on production and continued development. Work will be performed at Lockheed Martin facilities and across the company's U.S. industrial base. PrSM Increment 2 completed its first flight test in March and its second flight test in August - obtaining critical data during flight, launching from a HIMARS, deploying protective covers and engaging the target. Technologies developed through Lockheed Martin's Strigo family of solutions have informed aspects of the PrSM Increment 2 guidance package. Additional PrSM Increment 2 flight tests are scheduled for 2027. This award builds on the Department of War's broader investment in PrSM. Lockheed Martin is expanding capacity to quadruple PrSM production while continuing to develop additional PrSM increments. Lockheed Martin will begin production of the initial Increment 2 missiles while continuing flight testing and system maturation. The company is positioned to scale production as the Army moves toward larger Increment 2 procurements.
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