Key Points
- Healthcare stock Centene plunged 26% after it pulled its full-year financial outlook.
- Solar energy stocks, such as Enphase and First Solar, surged after a tax was removed from a key bill.
- Tesla’s stock rebounded after its China sales snapped an eight-month losing streak.
- Major banks, including JPMorgan and Bank of America, rose after announcing dividend hikes.
U.S. stock futures pointed to a slightly higher open on Wednesday as investors processed the passage of a major tax bill through Congress and looked ahead to new labor market data.
Several big names were on the move. Tesla’s stock bounced back, rising over 1% after the electric car maker’s sales in China saw a small increase in June, breaking an eight-month losing streak. Apple also edged higher after Jefferies analysts upgraded the stock, citing positive expectations for its upcoming quarterly report.
The banking sector saw broad gains, with JPMorgan Chase, Bank of America, and Wells Fargo all rising after announcing plans to increase their dividends. This comes after the banks successfully passed the Federal Reserve’s annual stress tests last week.
Solar energy stocks were among the day’s biggest winners. Companies like Enphase, First Solar, and Sunrun surged after a controversial excise tax was removed from the new tax bill, providing a major boost to the renewable energy sector and on the M&A front, software company Verint Systems soared 12% following a report that it is in buyout talks with private equity firm Thoma Bravo.
However, the news wasn’t good for everyone. Healthcare company Centene was the market’s biggest loser, with its stock plummeting 26% after it abruptly withdrew its financial forecast for the year. The company cited new industry data that showed its insurance plan revenue would be much lower than expected. Elsewhere, Constellation Brands fell slightly after the beverage maker missed its sales targets, citing consumer caution amid concerns about rising tariffs.
