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Good Morning!
Happy Wednesday! Let’s dive into it:
👉 Tesla has a major miss
👉 Medicare Advantage plans
👉Private payroll numbers are in
STOCK MARKET MADNESS IS ON 📈
Click HERE to view our bracket! 🏀 Let’s recap the Final Four 🥊
Hertz wins in an absolute nail-biter that went down to literally the last 10 minutes of the market being open. Hertz will advance to the Championship and play Verizon.
TESLA: Major Miss
On Tuesday, Tesla's stock dropped following an announcement that vehicle deliveries had decreased in the first quarter, marking the company's first yearly reduction in deliveries since 2020 due to pandemic-related issues. Production slightly fell by 1.7% from last year and deliveries saw a significant 8.5% drop. Tesla reported producing over 412,000 Model 3/Y vehicles but delivered fewer than expected. This includes a decrease in other model productions and deliveries compared to last year and the previous quarter.
Source: CNBC
Various challenges impacted Tesla this quarter, including supply chain disruptions due to attacks in the Red Sea and production halts in its German factory due to environmental protests. Competition in China and mixed reviews in the U.S. for its new Cybertruck also posed hurdles. Efforts to boost sales, including promotions and a push for Tesla's Full Self-Driving system, did not significantly increase sales volumes.
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MEDICARE: Advantage Plans
On Tuesday, stock prices of U.S. health insurers dropped after the Biden administration decided not to raise Medicare private plan payments as much as the industry had hoped. CVS Health's stock fell by over 8%, UnitedHealth Group's by nearly 7%, Elevance Health's by more than 3%, Centene's by 6%, and Humana's by over 10%, with Humana hit hard due to its heavy reliance on Medicare Advantage plans.
Source: NBC
This move adds to the challenges for insurers, like high medical costs and issues from a cyberattack on UnitedHealth Group. It also hurts the Medicare Advantage sector, which is key to the industry's growth. The government announced a 3.7% increase in payments to these plans, but effectively, this turned out to be a slight decrease after adjustments. This rate is important because it influences what insurers can charge for their plans and affects their profits. Medicare Advantage plans are private but linked to Medicare, offering lower costs and extra benefits, which attracts over half of Medicare's enrollees.
PRIVATE: Sector Jobs
In March, U.S. private sector jobs grew at the highest rate since July 2023, according to ADP. The report showed 184,000 new jobs, exceeding February's numbers and matching expert forecasts. Wages also grew by 5.1% year-over-year, continuing a steady trend.
Source: ETF Trends
Significant job increases were seen in sectors like leisure and hospitality, construction, and health services, with the South seeing the most growth. This data doesn't include government jobs.
Headlines You Need To Know: 🎙
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Source: Yahoo Finance
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