It has to do with the new higher China tariffs set to take effect on March 1, and people expecting Trump to meet Xi after his meeting with Kim in Vietnam at the end of Feb. , and Kudlow saying he didn't expect a meeting between Trump and Xi before the March 1 deadline. The market was expecting a deal before then, and it's apparently not going to happen.
Big news in the healthcare space today. Centene announced that they've bought WellCare Health Plans in a $13.5 billion cash and stock deal. This trend of consolidation that you've seen in healthcare will only continue, and you know have the largest government health insurance provide in the US via Centene.
I've talked a lot about CVS and Walgreens, and their relationships with Aetna and Humana respectively. Humana especially seems to be lagging behind their competitors. Just speaking anecdotally, I was at a large value based healthcare conference in Nashville last week, and we saw large national health plans like Blue Cross Blue Shield plans, United/Optum, Cigna, but I didn't see anyone from Humana which was really surprising to me. Plus Centene will most likely move the WellCare pharmacy business away from CVS to their own PBM platform. Very interesting development in the payer space, and WellCare shareholders had a great day yesterday.
There's a trading opportunity both ways. I'd short it, but I'd imagine a short this soon after the IPO, borrowing shares might be a little pricey. Under their current business model, Uber will continue to haemorrhage cash.
They need an inflection point, and have been searching for one in their ill-fated pipedream of autonomous vehicles. Now if they in fact are considering going the FB route and selling user data to become an ad platform much like FB, that would be a much more interesting business to look at.