US Treasuries Trade Sideways as Fed Officials Signal Diverging Views on Further Rate Hikes

October 9 – According to Nikkei Asia (link), Apple has asked its suppliers to cut production of the new iPhone 18 Pro model due to weak demand, resulting in Apple (AAPL.O) shares falling 1.8% in premarket trading to $334.21. The report states that, against the backdrop of soaring memory chip costs and rising prices, the component orders for October have been reduced by at least 15% compared to initial requirements. Apple has not yet responded to a Reuters request for comment. The current stock price is about 1% lower than the all-time intraday high of $345.34 reached on September 22. According to data compiled by the London Stock Exchange Group (LSEG), the average rating from 43 analysts covering the stock is "Buy," with a median target price of $330. (For the convenience of non-English speakers, Reuters provides automated translations of its report into several other languages. As automated translations may contain errors or lack the required context, Reuters does not guarantee the accuracy of the automated translation and provides it solely for reader convenience. Reuters accepts no liability for any damage or loss resulting from use of the automated translation function.)

Citi published a research report maintaining a "Neutral" rating on the e-signature and agreement cloud platform DocuSign, with a target price of $72.

Reuters, October 9 – In pre-market trading on Friday, shares of Humana (stock code: HUM.N) rose by 15%. Analysts said the health insurer is set to be the biggest beneficiary of the new 2027 Medicare Advantage star ratings. Humana stated that, with improvements in healthcare quality and member experience indicators, 95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher by 2027, a substantial jump from 20% in 2026 (link). JPMorgan analysts noted that they had previously projected this ratio to be between 60% and 70%. The U.S. Department of Health and Human Services uses a one- to five-star scale to rate Medicare Advantage and prescription drug plans. Higher ratings lead to government bonuses worth billions of dollars and can help attract more members. Analysts noted that Humana’s ratings performance outpaced its larger competitors: JPMorgan expects the proportion of UnitedHealth Group’s (UNH.N) plans rated four stars or higher to decrease from 81% to about 67%, while CVS Health’s (CVS.N) ratio will fall from 84% to about 70%. The U.S. Department of Health and Human Services said Thursday night that, overall, about 71% (link) of Medicare Advantage prescription drug plan enrollees will be in contracts rated four stars or higher in 2027. Evercore ISI analyst Elizabeth Anderson said that Humana had improved in prescription drug plan quality, health plan quality, and readmission rates. She added, “This improvement reflects management’s increased focus on these metrics over the past year.” Health insurers provide Medicare Advantage plans for the government to adults aged 65 and older and people with disabilities.