Market Movers: Levi Strauss, Health Insurers, and More
In the latest morning trading session, several companies have made headlines, showcasing varying performances across different sectors. Here’s a roundup of the significant movements before the market opened.
Levi Strauss Sees Gains
Levi Strauss & Co. experienced an impressive surge of 11% after the company reaffirmed its full-year forecast. It’s important to note that this outlook does not account for potential impacts from tariffs imposed by the White House. In its first-quarter results, Levi reported adjusted earnings of 38 cents per share, up 52% from the same period last year. Additionally, the company’s revenue reached $1.53 billion, indicating a 3% increase year-over-year.
Healthcare Stocks Rally
Health insurance stocks enjoyed a boost, following a report from The Wall Street Journal regarding the Trump administration’s plans to escalate payment rates for Medicare insurers to 5.06% for the upcoming year, a significant lift compared to the 2.23% increase proposed by the Biden administration. Major beneficiaries of this news included:
- Humana: +15%
- CVS Health: +9%
- UnitedHealth: +8%
Defense and Technology Updates
Lockheed Martin’s stock climbed by 2% after Vietnam announced its intent to purchase U.S. defense and security products to reduce its trade deficit. In the technology sector, Broadcom shares rose 3% following the announcement of a $10 billion share repurchase program, signifying confidence in the company’s diversified semiconductor and infrastructure software segments, as stated by CEO Hock Tan.
Furthermore, Marvell Technology saw a 4% uptick after the company agreed to divest its auto ethernet business to Infineon Technologies for $2.5 billion in cash, anticipated to finalize within the year.
Pharmaceuticals and Financial Services
Johnson & Johnson’s shares grew by 2% after Goldman Sachs upgraded the stock from neutral to buy, highlighting various growth opportunities across therapeutic areas. In the financial sector, Charles Schwab’s stock increased by 2.7% after being upgraded by Morgan Stanley to overweight, highlighting brokers with stable income sources and unique earnings growth drivers.
Retail Sector Movements
In the retail landscape, both Ross Stores and Ralph Lauren experienced gains, rising by 2% and 4%, respectively. Goldman Sachs attributed these upgrades to the resiliency of these brands, particularly indicating Ross’s potential performance amid a slowing economy, and Ralph Lauren’s broad global reach and pricing power to mitigate risks from tariffs.
Other Notable Changes
Despite overall positive movements in the market, Greenbrier saw a decline of 2% after it revised its revenue guidance for the year, now expected to be between $3.15 billion and $3.35 billion, down from an earlier forecast of $3.35 billion to $3.65 billion. Eli Lilly’s stock rose by 2%, buoyed by a buy rating initiation from Goldman Sachs, which described the current stock price as an attractive entry point.
Meanwhile, Dave & Buster’s Entertainment saw a nearly 2% increase after optimistic statements regarding the company’s performance were made by Interim CEO Kevin Sheehan, indicating an improvement in results heading into March and April compared to the previous months.
Conversely, shares of Janover dropped sharply by 17%, following an extraordinary surge of over 800% the previous day, attributed to the announcement of a new crypto treasury strategy focused on the Solana token. The company also indicated plans for a name and ticker change within the year.
Conclusion
The premarket landscape highlights a mix of positive and negative movements, underscoring the dynamic nature of the financial markets. Investors will be monitoring these developments closely as they unfold throughout the trading day.