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This morning, insurance giant Aetna (AET – 57-13/16) released better-than-expected third-quarter earnings of $1.10 per share, which exceeded Wall Street estimates by 20 cents per share. In addition, the firm stated that it remains committed to its plan to exit about half of its Medicare HMO markets on January 1, 2001, a move the company expects will result in substantial improvement in the results of the remaining Medicare HMO business.
AET shares have been trading virtually sideways since mid-July. This consolidation has significantly reduced the effectiveness of the equity's moving-average trendlines.