While Apple Inc. (NASDAQ:AAPL)’s positive earnings surprise has the Nasdaq firmly in the green today, the other indexes are being pulled down by tremulous sentiment ahead of an important policy statement from the Federal Reserve’s Chair Janet Yellen. Some of the stocks that are making headlines today include Anthem Inc (NYSE:ANTM), GlaxoSmithKline plc (ADR) (NYSE:GSK), Dr Pepper Snapple Group Inc. (NYSE:DPS), Fiat Chrysler Automobiles NV (NYSE:FCAU), and The Coca-Cola Co (NYSE:KO). Let’s examine the important activity this is moving these stocks and also analyze hedge fund sentiment towards them.
Anthem Beats Estimates
Anthem Inc (NYSE:ANTM) is in the spotlight today after the company posted better than expected second quarter results. The Indiana-based health insurer reported EPS of $3.33 on $21.27 billion in revenue, beating analysts’ forecasts of $3.23 and $20.57 billion respectively. For the full 2016 year, Anthem expects $82.5 billion-to-$83.5 billion in revenue, a raise from its previous guidance of $82 billion. Medical enrollment increased by 3.2% year-over-year in the quarter, as the company has received a positive response to its Medicaid plans specially designed to cater low-income citizens. A total of 56 hedge funds in our database owned shares of Anthem Inc (NYSE:ANTM) at the end of the first quarter of 2016.
GlaxoSmithKline Beats Estimates, Plans to Invest in Britain
GlaxoSmithKline plc (ADR) (NYSE:GSK) has inched up by 1.74% so far today after the company posted impressive results for the second quarter. Britain’s biggest drug maker earned GBP0.25 ($0.33) per share, eclipsing estimates of GBP0.21 ($0.28). Revenue for the quarter came in at GBP6.35 billion ($8.32 billion), narrowly topping the forecasts of GBP6.34 billion ($8.31 billion). GlaxoSmithKline also announced that it will invest £275 million ($302 million) in its manufacturing sites in Britain to expand the production of its next-generation respiratory drugs and biotech medicines. The decision comes a month after the U.K voted to leave the EU, which left the financial markets stunned and risk-aversive. However, GlaxoSmithKline’s CEO Andrew Witty argued in a press statement that Britain remains an attractive place for drug manufacturing due to a skilled workforce and low tax rates. Among the hedge funds tracked by Insider Monkey, 28 funds were long GlaxoSmithKline plc (ADR) (NYSE:GSK) at the end of the March quarter.
On the next page we’ll discuss the news surrounding Dr Pepper Snapple, Fiat Chrysler, and Coca-Cola.