Look out for more upside after CVS Health (CVS) jumped by 14.95% to close at $63.22 on Wednesday. The firm reported revenue rising by 4.% Y/Y to $97.71 billion. CVS also issued its guidance for 2025.
The drugstore expects GAAP EPS of $4.58 to $4.83. Cash flow will top around $6.5 billion. CVS stock snapped back because markets oversold the stock. The new CEO breathes life into the business. The firm now must work down its debt, after years of acquisitions.
On the bond market, treasury yields spiked higher on Wednesday. Watch out for yields rising again this morning. The 30-year Treasury (TLT) now yields 4.83%, up by 1.70%. The 10-year Treasury is 4.63%, up by nearly 2.2%. In January, CPI rose by 0.5%, up from 0.4% reported in December 2024. The odds of a rate hike will rise compared to the rate pause scenario.
The Federal Reserve needs to watch out for price spikes caused by tariffs.
In the energy sector, Chevron (CVX) faces selling pressure as WTI crude prices fall. The firm will lay off up to 20% of its workforce, or 9,100 jobs globally. Investors might continue to dump shares of ConocoPhillips (COP) and Exxon (XOM). Energy firms may shed jobs and cut costs to match weaker oil prices.
