UnitedHealth stock gains alongside other insurers on Trump’s Dr. Oz nomination
- UnitedHealth stock gains on Dr. Oz being named to Trump administration.
- Trump pushed Mehmet Oz's nomination to be head of Centers for Medicare & Medicaid Services.
- Oz is considered likely to push more Medicare Advantage plans, which benefit private-sector insurers like UNH.
- UNH stock is testing the $600 resistance level on Wednesday.
UnitedHealth Group (UNH) stock surged more than 3% on Wednesday as investors bid up most US health insurers after President-elect Donald Trump named Dr. Oz to manage the government’s healthcare insurance unit for the elderly and indigent.
The market is bracing for Nvidia (NVDA) earnings that arrive after the close on Wednesday, so the Dow Jones Industrial Average (DJIA), which contains both UnitedHealth and Nvidia, has slumped slightly. Only the S&P 500 has made gains among the major equity indices on Wednesday, and the NASDAQ is faring the worst, down 0.7%.
UnitedHealth stock news
Dr. Mehmet Oz, better known as Dr. Oz on television, has been a well-known face of medicine for years. Through his appearances on the Oprah Winfrey Show and elsewhere, Dr. Oz became a common personality for those seeking medical advice before then running and losing as the Republican Senate nominee for Pennsylvania in 2022.
Trained as a cardiothoracic surgeon, Oz has been named by the incoming Trump administration to head the Centers for Medicare & Medicaid Services (CMMS). This part of the government manages trillions of dollars that provide healthcare for retirees (Medicare) and those without means (Medicaid).
The basic gist here is that Dr. Oz has made positive statements in regard to Medicare Advantage plans. These plans give private insurers the ability to manage government Medicare plans for a profit.
Besides UnitedHealth, other insurers like CVS Health’s (CVS) Aetna unit, Elevance Health (ELV) and Humana (HUM) all saw their share prices climb on Wednesday.
JPMorgan pointed to postive statements that Dr. Oz made during his Senate run in 2022.
"We can expand Medicare Advantage plans," Oz said back on the campaign trail two years ago. "These plans are popular among seniors, consistently provide quality care, and have a needed incentive to keep costs low."
UnitedHealth stock chart
UNH stock is having trouble attacking the $600 level. Above there, resistance at $608 looms.
UNH daily stock chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
