Wednesday, June 14, 2023

Shelling out a 15% Dividend

Trade of the Day Wake-Up Watchlist

Good morning Wake-up Watchlisters! While you're sipping a mug of rocket fuel-infused espresso you'll see stock futures were mixed on Wednesday. Investors are awaiting the Federal Reserve's latest rate policy decision, and right now expectations are leaning towards a pause in its interest-rate hiking campaign. Overall, the market could see significant movement after Federal Reserve Chairman Jerome Powell's conference.

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Here's a look at the top-moving stocks this morning.

UnitedHealth Group Incorporated (NYSE: UNH)

UnitedHealth Group is down 4.85% premarket following comments from a company official regarding a potential surge in medical costs in the coming months. During a panel discussion at a healthcare conference, Tim Noel, responsible for UnitedHealth's Medicare and retirement business, highlighted a notable increase in older Americans choosing to undergo elective procedures that were delayed due to the Covid-19 pandemic. This rise in procedures could put pressure on the medical cost ratios, a crucial profitability measure, not just for UnitedHealth but also for competitors such as Humana and CVS Health, which owns the Aetna division.

 

Lumen Technologies (NYSE: LUMN)

Lumen Technologies is up 7.51% premarket following a recent press release revealing a partnership with Microsoft and Google's Alphabet division for a new network interconnection system called ExaSwitch. Alongside this positive news, Lumen may also be benefiting from favorable inflation data released today. Given that Lumen has lots of debt, that's good news for the telecom company.

 

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Shell plc (NYSE: SHEL)

Shell is up 2.06% premarket after new CEO Wael Sawan announced the company is set to increase its dividend by 15% and prioritize the expansion of natural gas production as it focuses on the profitable segments of its business. This strategic shift aims to drive higher returns, even if they involve carbon-intensive activities, while scaling back ventures that fail to meet the desired financial targets.

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Opendoor Technologies (Nasdaq: OPEN)

Opendoor Technologies is up 8.19% premarket. The stock benefited from a Consumer Price Index (CPI) report indicating a continued slowdown in inflation. This development is favorable for Opendoor because it increases the likelihood of the Federal Reserve pausing its interest rate hikes at the upcoming meeting. As a house flipping company, the Federal Reserve's series of interest rate increases over the past 15 months has led to a surge in mortgage rates, negatively impacting real estate tech stocks like Opendoor.

 

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Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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