Stock markets will rally sharply today in response to the U.S. agreeing to suspend its attack on Iran for two weeks. That should reopen the Strait, although the details of the shipment traffic volumes are unknown.
Amid that backdrop, investors should be wary of stocks in a downtrend.
The Trade Desk (TTD) is reportedly losing another three executives. TTD stock dropped by 6.8% on Tuesday after Chief Marketing Officer Ian Colley resigned. Melinda Zurich, a communications executive, and Mathew Henick, VP of consumer products, are also leaving.
In the food sector, The Campbell’s Company (CPB) risks re-testing the $20.62 yearly low. The stock yields 7.08%, but the weak stock suggests more risks ahead.
Axon (AXON) fell by 9.73% yesterday after touching a 52-week low. In the last quarterly report, revenue grew by 38.6% Y/Y to $796.72 million. The weak stock is perplexing.
Tuesday’s rally in managed care stocks has momentum. The Centers for Medicare and Medicaid Services (“CMS”) set reimbursement rates for 2027 that are better than expected. Expect UnitedHealth (UNH), Humana (HUM), and CVS Health (CVS) shares to trend higher in the coming weeks. UNH stock, in particular, is due for a relief rally. $300 - $310 is the trading range to look for. UNH needs to break out above $335 to confirm the latest rebound would hold up.
