The Obamacare Fears Crushing this Insurance Stock

Uncertainty over federal subsidies is sinking Centene stock

Managing Editor
Oct 24, 2017 at 2:23 PM
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Stocks are significantly higher this afternoon, with the Dow hitting a fresh record high. Healthcare company Centene Corp (NYSE:CNC) is down, while Jeep parent Fiat Chrysler Automobiles NV (NYSE:FCAU) and biotech stock Pain Therapeutics, Inc. (NASDAQ:PTIE) are enjoying breakout sessions. Here's a quick look at what is moving shares of CNC, FCAU, and PTIE.

CNC Stock Plummets Over Federal Subsidy Uncertainties 

Centene stock is down 3.8% to trade at $94.29, dipping lower after the healthcare company predicted it could lose 7-12 cents off its fourth-quarter earnings due to President Trump's decision to cut off Obamacare subsidies. However, the shares have found familiar support from its 50-day moving average, and is still up 66% year-to-date. Meanwhile, analysts may need to reconsider their bullish positions. Of the 16 brokerages that cover CNC, 12 rate the shares a "buy" or "strong buy."

Fiat Chrysler Stock Flirting With Record Highs After Earnings Beat

This morning, Fiat Chrysler joined rival General Motors in reporting third-quarter earnings that exceeded Wall Street expectations. The news has FCAU stock up 5.8% to trade at $17.51, and flirting with the record high of $18.10 it set on Sept. 22. It's been a stellar run for the equity, adding a whopping 172% year-over-year, and it has outperformed the broader S&P 500 Index (SPX) by nearly 32 percentage points during the past three months.

In the options pits, call buying has been vastly more popular than put buying in recent months at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This is according to the equity's 50-day call/put volume ratio of 5.12, which ranks in the 86th percentile of its annual range.

Pain Therapeutics Top Of The Nasdaq After Alzheimer's Drug News

Pain Therapeutics stock is up over 38% to trade at $5.14, after PTI-125, the biotech's experimental drug for Alzheimer's, succeeded in early stage testing. The news takes PTIE stock to its highest point since April, but it topped out right at its 320-day moving average. Short sellers are likely sweating this sudden surge nonetheless. While short interest has decreased by 2% during the last reporting period, it accounts for 10% of the total available float. 

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