Midday Fly By: Insurers slip as Senate spending bill lacks ACA extension

The major averages were higher near noon after the U.S. Senate voted on a spending package that would end the longest government shutdown in U.S. history. A procedural vote in the Senate advanced a funding bill that would reopen the government and clear the way for three full-year appropriations bills, lifting some of the political and economic overhang, though shares of several insurers were falling as the new bill does not guarantee an extension of Affordable Care Act expirations.

Internationally, major European and Asian indies rose, as softer inflation data from China helped underpin sentiment. Weakness in other areas, such as declining auto sales, still reminds investors of structural headwinds however.

Looking to commodities, gold prices surged over 2% to roughly the $4,100 mark, as the “safe haven” asset continues its up-and-down run. Oil prices were fractionally lower, meanwhile.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Shares of health insurers UnitedHealth (UNH), Centene (CNC), and Humana (HUM) were slipping after the U.S. Senate voted toTrump posted on Truth Social that the “enrichment” of health insurers “must stop”
• TreeHouse (THS) agreed to be acquired by InvestIndustrial for $22.50 per share in cash
• Metsera (MTSR) entered into a deal to be acquired by Pfizer (PFE) for up to $86.25 per share, outbidding Novo Nordisk (NVO)
• Instacart (CART) reported upbeat Q3 earnings and revenue

2. WALL STREET CALLS:

• Eli Lilly (LLY) upgraded to Outperform at Leerink
• Coinbase (COIN) upgraded to Buy at Monness Crespi
• Strategy (MSTR) upgraded to Neutral at Monness Crespi
• Six Flags (FUN) downgraded to Equal Weight at Morgan Stanley
• JD.com (JD) downgraded to Underweight at Morgan Stanley

3. AROUND THE WEB:

• Papa John’s (PZZA) is nearing a potential buyout that would see the business taken private by a consortium led by TriArtisan Capital Advisors, ABC Money claims, though Seeking Alpha questioned the report
• Indonesia is discussing a potential merger or acquisition between Grab (GRAB) and its rival GoTo Gojek (GTOFF), Reuters says
• Tesla (TSLA) has introduced a new short-term car rental program at select U.S. stores, targeting three- to seven-day rentals starting at $60 per day, Electrek reports
• Apple (AAPL) is planning a series of upgrades to its satellite features for the iPhone and its smartwatches, is nearing a $1B-a-year deal to power a revamped Siri with a custom Google (GOOGL) Gemini model, Bloomberg says
• Robinhood (HOOD) is planning to create a route for amateur investors to put money in private AI companies, FT says

4. MOVERS:

• Cogent Biosciences (COGT) increases after reporting data from its Phase 3 PEAK trial of bezuclastinib
• Personalis (PSNL) gains after announcing Medicare coverage of NeXT Personal test
• Ironwood (IRWD) higher after reporting Q3 results and raising its guidance for FY25
• MannKind (MNKD) falls after providing an update on its Phase 3 ICoN-1 trial of nebulized clofazimine
• Akebia (AKBA) and Monday.com (MNDY) lower in New York after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Lincoln Educational (LINC) reported Q3 results and raised its guidance for FY25
• Organon (OGN) reported Q3 results and cut its guidance for FY25
• Telos (TLS) reported Q3 results and provided guidance for Q4 and FY25
• Camtek (CAMT) reported Q3 results, with EPS and revenue beating consensus
• Pagaya (PGY) reported Q3 results and raised its guidance for FY25, with CEO Gal Krubiner commenting, “Our results demonstrate another quarter of prudent underwriting and consistent execution”

INDEXES:

Near midday, the Dow was up 0.12%, or 56.68, to 47,043.78, the Nasdaq was up 1.48%, or 340.79, to 23,345.33, and the S&P 500 was up 0.83%, or 55.82, to 6,784.62.