Daily Newsletter | August 17, 2023

TLDR

MARKET RECAP → Stocks fell for a third straight day as investors digested the latest round of earnings and economic data. The tech-heavy Nasdaq (QQQ) fell -1.17% while the 10-year U.S. Treasury yield reached its highest level since October 2022. Bitcoin (BTC) declined in lockstep, declining over -4% on Thursday.

CVS GETS DROPPED LIKE A BAD HABIT → ? Blue Shield ghosted CVS (CVS) for cheaper dates with Mark Cuban’s Cost Plus Drug Company & Amazon (AMZN). Today’s Bull vs. Bear matchup, Cigna (CI) and UnitedHealth Group (UNH), also dipped on the news.

MEDIA MONOPOLY MESS → ? Writers Guild called out Disney (DIS), Amazon (AMZN), and Netflix (NFLX) for playing monopoly.

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

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Today’s S&P 500 Heatmap

Source: finviz.com

Bull vs. Bear Weekly Recap with JeffC ?

Today’s Top News

CVS GETS DROPPED LIKE A BAD HABIT

? CVS Health’s (CVS) stock took a nosedive after Blue Shield of California announced they’re ditching CVS’s pharmacy services. They’re now cozying up with Mark Cuban’s Cost Plus Drug Company and Amazon Pharmacy (AMZN), aiming to cut drug costs for their 5 million members.

? This move suggests that health insurers might be rethinking their commitment to the traditional pharmacy benefit management (PBM) system. Other PBM providers felt the tremors too, with stocks of companies like Cigna (CI) and UnitedHealth Group (UNH) also dipping.

? While CVS’s Caremark had been Blue Shield’s PBM buddy for over 15 years, Blue Shield’s new plan is to collaborate with five different companies to offer more transparent and affordable medication access. They anticipate savings of up to $500 million annually from this switch-up.

Source: shutterstock

MEDIA MONOPOLY MESS

? Disney (DIS), Amazon (AMZN), and Netflix (NFLX) were spotlighted by the Writers Guild of America West for flexing their market muscles a bit too much in the media industry.

? Their power moves? Buying out competitors, setting the stage for higher consumer prices, and giving creative workers a raw deal on wages.

? The report sounded the alarm, urging antitrust agencies and lawmakers to step in, halt further consolidation, and crank up the oversight on streaming.