Market Roundup (ABT, BAC, UBS, UPS, UNH, HS, HUM)
According to the chief economist of Bank of America (NYSE: BAC), the Fed's move to raise the discount rate signals that "the financial crisis is largely over." However, some economists feel that the FOMC may soften its "extended period" language at the next meeting, despite assurances to the contrary.
Abbott Labs (NYSE: ABT) has hiked its quarterly dividend by 10% to $0.44 per share. The hike marks an increase for the 38th consecutive year.
UBS (NYSE: UBS) is deferring 60% of its bonuses for employees earning more than $250,000 in total pay. UBS initiated this mechanism after the bank posted a net loss for the first time in 2009. This initiative deprived bankers of $276 million in deferred pay that they were to receive this year.
Bank of America (NYSE: BAC) and UBS (NYSE: UBS) are hiring talented bankers by doubling their base salaries from what they were being offered a year back. One of these talent scouts disclosed that some of these firms were hemorrhaging talent and “those gaps are being filled in a hurry."
The US has sought the help of UPS (NYSE: UPS) with an aim to double its exports in five years. The packaging firm will identify smaller companies that export to just one country with the help of its data and guide these companies to new markets. According to the latest data, just less than 1% of 30 million US companies export goods and services and of these, 58% export to only one country.
Shares of UnitedHealth (NYSE: UNH), Humana (NYSE: HUM) and HealthSpring (NYSE: HS) have slipped today as the government is expected to announce cuts of as much as 4% in Medicare Advantage payments to health insurers. According to one analyst, "We cannot see an outcome, even with flat rates, that leads to earnings growth.”
Read more from Benzinga's Markets.
