Trump’s Tweets Trigger a Sell-Off in the Healthcare Sector
The healthcare sector fell lower on Tuesday and weighed on the S&P 500. On March 7, the S&P 500 healthcare sector fell 0.67%. Stocks in the healthcare sector lost strength due to President Trump’s tweets about the drug industry.
Interested in ALXN? Don't miss the next report.
Receive e-mail alerts for new research on ALXN
President Trump tweeted that he is working on a new system that would increase competition in the drug industry and bring down drug prices. The tweet pulled drug company stock prices lower on Tuesday. In January, President Trump commented that drugmakers are “getting away with murder” considering what they charge for medicine. The tweet came a day after the GOP unveiled a bill to replace Obamacare.
Endo International (ENDP), Express Scripts (ESRX), and Alexion Pharmaceuticals (ALXN) were the top losers in the healthcare sector. Endo International, a global specialty pharmaceutical company, fell 4.4% on Tuesday. The stock weakened after Deutsche Bank cut the one-year price target from $20 to $18. The revised price target is due to Endo International’s increased spending and fewer generic sales. President Trump’s tweet also dented the sentiment and sent the stock to the lowest close since February 2003.
The energy sector also drove the market lower on Tuesday. The S&P 500 energy sector fell 0.9% on March 7. Southwestern Energy (SWN), Hess (HES), and Noble Energy (NBL) were the top losers in the energy sector on Tuesday. The market is looking forward to the US ADP non-farm employment change data scheduled to release at 8:15 AM EST on Wednesday. The data will help gauge the strength of the economy.
In the next part, we’ll discuss how commodities performed in the early hours on March 8.