Wall Street’s main indices finished mixed on Tuesday, as investors digested the country’s latest inflation figures, which came out lower than expected.
On Tuesday, the Labor Department reported that the Consumer Price Index for April rose by only 0.2 percent last month, bringing the annual inflation rate to 2.3 percent, versus the 2.4 percent in March. It was the lowest annual rate since February 2021.
Only the S&P 500 and the tech-heavy Nasdaq registered gains among all major indices, up by 0.72 percent and 1.61 percent, respectively. The Dow Jones, on the other hand, was down by 0.64 percent.
Beyond the main indices, 10 firms lagged in performance amid negative news, sparking sell-offs. In this article, we name Tuesday’s 10 worst-performing stocks and detail the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
10. Centene Corporation (NYSE:CNC)
Centene Corp. dropped its share prices by 6.20 percent on Tuesday to close at $58.97 apiece, in line with the drop in healthcare stocks and the lack of fresh catalysts to boost investing appetite.
In recent news, Centene Corp (NYSE:CNC) reported an impressive earnings performance in the first quarter of the year, with net income attributable to the company jumping 12.7 percent to $1.3 billion from $1.16 billion in the same period last year. Revenues also increased by 15 percent to $46.6 billion from $40.4 billion year-on-year.
The strong figures propelled the company’s revenue growth guidance for full-year 2025, with a target of $164 billion to $166 billion.
“Our first quarter results demonstrate the resiliency of Centene’s platform and the progress we are making as an organization while navigating a dynamic policy landscape,” said Centene Corp. CEO Sarah London.
“We are pleased to reiterate our full year 2025 adjusted diluted earnings per share outlook of greater than $7.25 and continue to see attractive opportunities to grow from the strength of our core businesses in the years to come,” she added.
9. CVS Health Corporation (NYSE:CVS)
CVS Health extended its losing streak for a third straight day on Tuesday, dropping 6.65 percent to close at $60.50 apiece as investor sentiment was dampened by President Donald Trump’s executive order to lower the prices of medicines.
The news sparked fears among investors over the impact of the new order on the profits and margins of drugmakers and retailers, including CVS Health Corporation (NYSE:CVS).
Further weighing down on sentiment was a lawsuit filed by four state attorneys general against the company, claiming that CVS Health Corporation (NYSE:CVS) and its pharmacies allegedly submitted “false and fraudulent” claims to state Medicaid programs.
According to attorneys general from Connecticut, Indiana, Oklahoma, and Massachusetts, CVS Health Corporation (NYSE:CVS) has not submitted usual and customary prices available to other payers on prescription drug claims to Medicaid since 2016. CVS has yet to comment on the allegations.
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