The S&P 500’s top losses on May 2 were:
Unum Group, which provides supplemental insurance coverage in the workplace, was the S&P 500’s top loss on Wednesday. After gaining for three consecutive trading weeks, Unum Group started this week on a weaker note and declined as the week progressed. On May 2, Unum Group opened the day lower and declined to the lowest levels traded since mid-November in 2016.
The market sentiment on Unum Group weakened following the release of weaker-than-expected 1Q18 results. According to management, the EPS (earnings per share) in 1Q18 was $1.23. The EPS, excluding net realized tax gains and losses, was $1.24—just below analysts’ forecast of $1.25. The first quarter revenues were $2.9 billion—just above analysts’ forecast of $2.89 billion. The stock price was impacted the most by the increase in the loss ratio in long-term care. According to management, the loss ratio in long-term care rose to 96.6% from 88.6% recorded in 1Q17. The increased ratio dented the market sentiment and weighed on major large-cap insurers like MetLife Inc (MET), Prudential Financial (PRU), AIG (AIG) on Wednesday.
On May 2, Unum Group declined 17% and closed the day at $39.78. Unum Group is part of the S&P 500 financials sector, which declined 1.2% on Wednesday.
Next, we’ll discuss how the US Dollar Index and Treasury yields performed in the early hours on May 3.