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Humana (HUM) shares slid after Jefferies downgraded the insurer's stock, pointing to the negative impacts of the company's latest ratings for its Medicare offerings.

Humana stock plunged last week after the Centers for Medicare & Medicaid Services (CMS) said the quality rating of one of its plans, which accounts for nearly half of its Medicare Advantage (MA) memberships, fell to 3.5 stars down from 4.5 stars last year. Higher star ratings generate bonus payments for the insurers that offer plans that earn them.

Today the shares, down nearly 2%, are trading at lows not seen since the early days of the 2020 COVID-19 outbreak. Jefferies, meanwhile, cut its rating on Humana to “hold” from “buy,” and slashed its price target from $419 to $253, well off Wall Street's consensus around $327 according to Visible Alpha data.

The analysts said that although Humana is suing the CMS, calling its star ratings process flawed—and noting that United Health Group (UNH) and Elevance Health (ELV) both filed successful appeals last year—they are continuing to move forward as if Humana would not win its appeal against CMS.

Shares of Humana have sunk since the CMS rating came out last week, adding to a slump that began in January when the company first warned that higher medical costs and government regulations would hurt profits.

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Shares of Generac Holdings (GNRC), a producer of home generators and other emergency power products, surged again Monday as another hurricane approaches the Southeast U.S.

Hurricane Milton rapidly progressed to a Category 5 storm Monday and is expected to make landfall in Florida by Wednesday, according to the National Hurricane Center.

Generac stock was up more than 8% at around $173.50 in mid-afternoon trading, at its highest levels since October 2022. The stock has gained nearly 35% so far in 2024.

The generator maker experienced a similar stock-price bump due to Hurricane Helene a few weeks ago, jumping about 10% the week that storm made landfall.

Generac also raised its full-year 2024 net sales outlook in July “[a]s a result of recent power outage activity, which includes the impact of major outage event Hurricane Beryl.”

This year's strong hurricane season is affecting where younger U.S. adults want to live, according to a new survey from the real estate brokerage Redfin. Roughly a third of respondents ages 18-34 said they are reconsidering where they would move after hearing about the impact of Hurricane Helene. That compares with 15% of those surveyed who are age 35 and older, Redfin said Monday.

One possible reason is insurance costs. Nearly a quarter of respondents expect their home insurance premiums to rise after Hurricane Helene, with 32% of those in the South. 

However, 45% of overall respondents, and 40% of those living in the South, said Hurricane Helene didn't change their perspective on where to live.

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Super Micro Computer (SMCI) shares soared Monday as the server maker reported strong shipments of its graphics processing units (GPUs), driven by artificial intelligence (AI) demand.

The company said it recently deployed 100,000 GPUs with its liquid cooling technology to “some of the largest AI factories ever built.”

Super Micro Computer also announced a new lineup of direct liquid cooling products for servers that it said could help AI firms cut their energy costs. 

CEO Charles Liang said the company’s liquid cooling solutions “are now cooling massive, state-of-the-art AI factories, reducing costs and improving performance.” Liang added that data center operators are coming to Super Micro Computer “to meet their technical and financial goals for both the construction of greenfield sites and the modernization of existing data centers.”

Super Micro Computer shares were up over 13% at $46.77 in intraday trading Monday,and have gained about two-thirds of their value since the start of the year. Shares of AI chipmaker Nvidia (NVDA), a partner of Super Micro Computer, also got a boost Monday and have more than doubled in value in 2024 so far.

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U.S. equities fell at midday as the market reacted to rising oil prices. The Dow Jones Industrial Average, S&P 500, and Nasdaq were all down.

Humana (HUM) shares dropped when Jefferies downgraded the stock, pointing to the negative effect from the insurer's latest ratings for its Medicare offerings.

Apple (AAPL) shares were also hit by a downgrade from Jefferies, which said that expectations for sales of iPhones are too high. 

A downgrade from Wells Fargo sent shares of Amazon (AMZN) lower. The bank argued the online retailing giant's positive outlook faces headwinds.

Super Micro Computer (SMCI) shares soared as the tech firm announced it recently sent major artificial intelligence (AI) factories 100,000 graphics processing units (GPUs) with its liquid cooling technology.

Shares of Pfizer (PFE) gained on a report that activist investor Starboard Value took a roughly $1 billion stake in the drugmaker.

Arcadium Lithium (ALTM) shares jumped on word mining giant Rio Tinto (RIO) has approached the lithium producer about an acquisition. 

Oil futures continued their climb on Middle East tensions. The yield on the 10-year Treasury note advanced. Gold prices were little changed. The U.S. dollar was up against the pound, lost ground to the yen, and was little changed against the euro. Most major cryptocurrencies traded higher.

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Kanye West and Bianca Censori are reportedly heading for divorce after less than two years of marriage

According to insiders from TMZ, Kanye West and Bianca Censori have reportedly hit a rough patch and split a few weeks ago.

New York Post reports that Bianca has traveled to Australia to be with her family, while Kanye plans to move to Tokyo. The reasons for their separation remain unclear, but Kanye has been telling friends that he intends to divorce Bianca. He has been seen alone in Tokyo, enjoying local restaurants and events without her, fueling speculation about their split.

The couple, who married in December 2022, was frequently seen together at public events, but they haven’t been spotted together since September 20. Sources also confirm they obtained a confidential marriage license in Palo Alto, California.This marks Kanye’s second divorce, following his marriage to Kim Kardashian, with whom he shares four children.

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Apple (AAPL) shares lost ground Monday after Jefferies downgraded the stock, arguing that the anticipated sales of iPhones are too high.

The bank cut Apple's rating to "hold" from "buy," although it raised its price target to $212.92 from $205.00.

The analysts wrote in a note to clients that "smartphone hardware needs rework before being capable of serious AI, with likely timeline of 2026/27."

They added that "high expectations for iPhone 16/17 are premature."

The analysts pointed out that their outlook for Apple's fiscal 2024 fourth-quarter net sales is less than the Wall Street consensus, and that the tech firm's 33 times full-year estimated adjusted price-to-earnings (P/E) ratio is near an all-time high. 

Shares of Apple fell less than 1% Monday morning but are up 17% year-to-date.

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