Health-Care Companies Show Resilience in Strong Earnings Season
Despite a slight decline in the broader market, health-care companies have fared relatively well due to their robust earnings.
CVS Health: A Strong Second Quarter
CVS Health, a prominent drug-store chain and insurance firm, reported a remarkable 10% increase in its second-quarter sales. This growth was primarily driven by the expansion of its health benefits business. Despite this positive news, CVS Health faced a minor dip in its stock prices.
Twist Bioscience: Exceeding Expectations
Twist Bioscience, a biotechnology company specializing in synthetic DNA, witnessed an uptick in its shares after reporting impressive figures for its fiscal third quarter. The company achieved better-than-expected loss and revenue growth, showcasing its resilience and potential.
Health Care's Contribution to Employment Growth
The health care sector played a significant role in employment growth during July, as highlighted by the Labor Department. Initially lagging behind other sectors in recovery, employment in health care has now surpassed pre-pandemic levels by 3.3%.
According to economists at Bank of America Global Research, this recent surge in job gains within the health care industry can be attributed to the normalization of medical care demand following Covid-related disruptions and the increasing aging population.
In summary, health-care companies have demonstrated their ability to navigate through challenging times, showcasing strong performances and contributing to overall economic recovery.
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