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Today is Friday, October 11, 2024.

The Early Bird Index today is 74.30.

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Humana's Medicare Rating 💊

The bad year for Humana (NYSE: HUM) took another awful turn with the health insurance company falling by 4.75% in after-hours trading on Thursday.

Details: On Thursday afternoon, the U.S. government announced quality ratings for the 2025 Medicare health and prescription drug plans, which impacts bonus payouts. The report said most Medicare Advantage users have plans rated with 4 or more stars.

Powering the Story: Last week, the government lowered Humana’s rating to 3.5 from 4.5 in 2024. That’s bad for Humana.

Stock Price: Humana is down 46% this year, including a 27% nosedive in the last 30 days.

Early Bird’s Nest Egg Gains: Humana’s downgrade in its Medicare Advantage plan ratings by the Centers for Medicare and Medicaid Services is a big problem.

• This ratings decline is expected to result in reduced enrollment projections for 2025 and lower revenue forecasts for 2026.

• The downgrade could potentially lead to a $1.9 billion revenue hit in 2026.

Final Thoughts: In addition to the Medicare Advantage rating downgrade, Humana is also dealing with financial performance concerns and industry-wide pressures.

Notables

Notable Earnings Today: JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), BlackRock (NYSE: BLK), BNY Mellon (NYSE: BK), Fastenal (Nasdaq: FAST), Bank7 (Nasdaq: BSVN).

Notable IPOs Today: High Roller Technologies, Inc. (NYSE: ROLR).

Notable Equity Crowdfunding Campaigns Ending Today: Moon Farm (Honeycomb), ZNest (Wefunder), Funnel Cake Spot (Honeycomb), Black Forest Bakery (Honeycomb).

Notable Economic Events Today: Producer Price Index / Core PPI (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET), WASDE Report (12:00 p.m. ET).

Uniswap's New Layer-2 Network

The price of the cryptocurrency Uniswap jumped about 10% on Thursday following a developer announcement.

Details: Uniswap Labs said it built its own application-specific layer-2 blockchain network called Unichain.

Definition: A layer-2 network is a secondary blockchain designed to support the primary network blockchain.

Final Thoughts: Uniswap’s price has nearly doubled in the last 12 months. 

Sanofi’s Consumer Health Unit

Sanofi (Nasdaq: SNY) ticked up 0.60% in after-hours trading on Thursday after a report about the French pharmaceutical company surfaced.

Details: Bloomberg reported that the private equity firm Clayton Dubilier & Rice is nearing a deal to acquire Sanofi's consumer health unit for about €15 billion.

• Sanofi did not respond to the report.

Final Thoughts: Sanofi is up 9.54% this year.

Trends to Watch

Disappointing: Four Reasons Ether ETFs Have Underperformed (CoinDesk)

Big Winners: Palantir Stock Has Gained 16% Since Being Added to the S&P 500. This Stock Did Even Better. (Barron’s)

Chip Wars: AMD launches AI chip to rival Nvidia’s Blackwell (CNBC)

Rising Rates: Average US 30-year mortgage rate surges to 6.32%, adding pressure to buyers facing high home prices (Associated Press)

RIP: Ratan Tata, Beloved Indian Industrialist Who Made Tata a Global Business, Dies at 86 (Wall Street Journal)

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_{The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.}