Week In Review: How Trump’s Policies Moved Stocks – Sunday, October, 22

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly:

1. COST SHARING SUBSIDIES: On Monday, Leerink analyst Ana Gupte told investors that she sees the Healthcare Facilities and Centene (CNC) most structurally impacted to the downside in 2019 and beyond at 15% of earnings, if there is no legislative or other budgetary compromise to restore the Cost Sharing Subsidies after President Trump’s executive action to stop funding them. The analyst also noted that Healthcare Facilities also face a structural headwind in 2019 and beyond with Exchanges contributing 1%-5% of EBITDA. In the near-term in 2017, Gupte says Molina Healthcare (MOH) faces transient balance sheet pressure with the fourth quarter unfunding placing pressure of $135M and wiping excess parent cash possibly necessitating an equity raise, while other HIX plans Anthem (ANTM), Centene and Cigna (CI) can offset with their excess capitalization at the subsidiaries and at the parent.

2. HEALTHCARE DEAL: Republican Senator Lamar Alexander said on Tuesday that he and Democratic Senator Patty Murray have reached a bipartisan deal to extend key Obamacare payments to insurers for two years, according to The Hill. President Trump had announced last week he was cutting off the payments, the report noted. The day after, President Donald Trump tweeted: “I am supportive of Lamar as a person & also of the process, but I can never support bailing out ins co’s who have made a fortune w/ O’Care.” His tweet is an apparent reference to reports regarding the bipartisan deal to extend key Affordable Care Act payments to insurers for two years. Publicly traded healthcare insurance companies include Aetna (AET), Anthem, Centene, Cigna, Health Net (HNT), Humana (HUM), Molina Healthcare, UnitedHealth (UNH) and WellCare (WCG). Publicly traded hospital operators include Community Health (CYH), HCA Healthcare (HCA), LifePoint (LPNT), Tenet (THC) and Universal Health (UHS).