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Health insurer stocks dropped after UnitedHealth Group warned of higher medical costs as older Americans start to catch up on surgeries they delayed during the Covid-19 pandemic. 
Shares of UnitedHealth, Humana, Elevance Health and CVS Health all declined.
Insurance companies have benefited in recent years from a delay in nonurgent procedures, but that trend may be reversing.

Health insurer stocks dropped Wednesday after UnitedHealth Group warned of higher medical costs as older Americans start to catch up on surgeries they delayed during the Covid-19 pandemic. 
Shares of UnitedHealth, the largest U.S. health-care provider by market value, closed around 6% lower. Medicare-focused insurer Humana declined 11%. 

Elevance Health closed roughly 7% lower, and CVS Health, which owns insurer Aetna, slid nearly 8%. 
Insurance companies have benefited in recent years from a delay in nonurgent procedures due to hospital staffing shortages and the pandemic, which saw hospitals inundated with Covid patients. Hospitals at that time were widely seen as too risky to enter for elective procedures.
But on Tuesday, UnitedHealth executives indicated that trend may be reversing. 
The company has recorded “strong outpatient care activity” throughout April, May and the early part of June, Chief Financial Officer John Rex said at a Goldman Sachs health-care conference.
Most of the uptick in care has come from Medicare enrollees who are getting heart procedures and hip and knee replacements at outpatient clinics, according to Rex. 

UnitedHealth CEO Timothy Noel said older adults covered under Medicare are getting “more comfortable accessing services for things that they might have pushed off a bit.” 
Rex said the amount of premium revenue spent on care for the second quarter may be at the high end or “moderately above” expectations due to the increase in procedures. 
Shares of medical device manufacturers Medtronic and Stryker jumped 2.5% and 4%, respectively, after UnitedHealth’s remarks.
Shares of hospital operators HCA Healthcare and Tenet Healthcare also edged higher. More

Mediterranean fast-casual restaurant chain Cava priced its initial public offering at $22 per share.
At that pricing level, the company is valued at roughly $2.45 billion.
Cava opened its first location in 2011 and now operates more than 260 restaurants.

The Cava logo is displayed at a Cava location in Pasadena, California, Feb. 6, 2023.
Mario Tama | Getty Images News | Getty Images

Mediterranean fast-casual restaurant chain Cava priced its initial public offering at $22 per share, above a previously stated range, the company said Wednesday.
Cava said it sold 14.4 million shares, which at a price of $22 per share, raises nearly $318 million. The company on Monday raised its pricing expectations to a range of $19 to $20 per share.

related investing news

At $22 per share, the company is valued at roughly $2.45 billion, based on an outstanding share count of more than 111 million shares.
Shares are expected to debut on the public markets Thursday and trade under the stock symbol CAVA.
Cava, founded in 2006, opened its first location in 2011 and now operates more than 260 restaurants. It has drawn frequent comparison to Chipotle Mexican Grill for its build-your-own-entree style of dining.
Last year, Cava reported net sales of $564.1 million, up 12.8% from the year prior. However, its reported net loss was $59 million, wider than a net loss of $37.1 million in 2021.
— CNBC’s Amelia Lucas contributed to this report.
Correction: Cava raised its pricing expectations for its initial public offering Monday. An earlier version of this story misstated the day. More

A survey by CNBC and Morning Consult found 92% of Americans are pulling back spending.
It’s further evidence of what retailers like Walmart, Target, Home Depot and Best Buy called out as cautious consumer-spending shifts during the first quarter.
Among the hardest-hit categories by inflation-fueled spending cuts, clothing came in as the No. 1 nonessential category where consumers have cut back.

Nearly all Americans are cutting back on their spending in some way, according to a new CNBC and Morning Consult survey.
The survey found 92% of Americans are pulling back, further evidence of what retailers like Walmart, Target, Home Depot and Best Buy called out as cautious consumer spending shifts during the first quarter.

Shoppers continue to report inflation squeezing their finances, with concerns particularly heightened among middle-income Americans. Of the survey respondents, 92% of middle-income Americans — or those who make between $50,000 and $100,000 a year — reported being “somewhat” or “very” worried about higher prices.
That’s a higher proportion than those in low- and high-income groups, with 88% of each of those segments reporting feeling concerned about higher prices. One somewhat bright spot: That share of high-income households, represented by those earning $100,000 or more a year, represents an improvement from a year ago when 92% expressed concern around inflation, according to the survey.

A woman looks for products in a department store in New York City, Jan. 26, 2023.
Leonardo Munoz | Corbis News | Getty Images

Over the last six months, higher prices have led nearly 80% of consumers to cut spending on nonessential goods, like entertainment, home decor, clothing, appliances and more, the survey found.
Further, two-thirds of respondents reported spending less on essential items, like groceries, utilities and gas. In the grocery category, more than half of consumers said they’re buying cheaper alternatives, like private label brands, or just generally buying less.
“Customers continue to seek value given the impact of inflation,” Walmart CEO Doug McMillon said on the retailer’s first-quarter earnings call. “Private-brand penetration is up about 110 basis points versus last year for Walmart U.S.” A basis point is one-hundredth of a percentage point.

Spending at value-oriented grocery stores in May outpaced spending in the overall grocery segment, according to Bank of America aggregated credit and debit card spending data.
“We think this reflects trade down from higher incomes, in line with commentary from Grocery Outlet and Walmart,” Bank of America Securities analyst Robert Ohmes said.
What’s more, consumers don’t expect to change spending habits for the remainder of the year.
Two-thirds of respondents to the CNBC and Morning Consult survey said they still plan on cutting spending on essential items over the next six months, and 77% plan to slash spending on non-discretionary goods, a percentage only slightly below those who said they have already cut back in that area.
The CNBC and Morning Consult survey was conducted online earlier this month and polled more than 4,400 adults.

Categories seeing pullbacks

Among the hardest-hit categories by inflation-fueled spending cuts, clothing came in as the No. 1 nonessential category where consumers have cut back, with 63% reporting buying less since the beginning of 2023.
Walmart and Target, the nation’s largest multi-category retailers, each reported seeing weakness in apparel spending in the first quarter.

A woman looks for products in a department store on January 26, 2023 in New York City. US gross domestic product increased at an annual rate of 2.9% in the fourth quarter of 2022.
Leonardo Munoz | Corbis News | Getty Images

While experience-based spending — particularly travel — has held up better than goods purchasing this year, the survey found spending at bars and restaurants was the second most likely nonessential category to see cuts, with 62% reporting spending less.
Monthly aggregate restaurant spending slowed in May from April, according to Bank of America’s credit and debit card data. The “fast casual” segment continued its spending slowdown, “casual dining” saw fewer dollars than the month before, and pizza in particular continued to see year-over-year declines.
Spending on entertainment outside of the home, including concerts, has fared slightly better, with 58% of consumers reporting they’ve cut back there, according to the CNBC-Morning Consult survey.
Meanwhile, more than half of Americans say they’ve cut back on major household-related spending like renovations or appliances.
“We are seeing more of a ‘break, fix, replace’ than upgrade [in appliances] and a little sensitivity to these single, larger-priced discretionary items,” Home Depot CEO Ted Decker told CNBC ahead of its investor day Tuesday.
And nearly half of survey respondents said they’re spending less on electronics like computers and phones. That pullback was even more stark among lower-income Americans, with two-thirds of the group cutting back in the category.
Best Buy CEO Corie Barry said following the company’s first-quarter earnings report that customers are making trade-offs.
“Not every industry is seeing the exact same customer behavior because the customer is in control and making trade-off decisions based on how that inflation is affecting them personally,” Barry said.
–CNBC’s Harriet Taylor contributed to this report. More

Petco on Wednesday announced a pet-care collaboration with rapper Snoop Dogg.
The campaign’s first ad showcases Snoop Dogg as the human form of a Doberman pinscher, a nod to the rapper’s 1993.
The collaboration features Petco Picks by Snoop, which include toys, treats and grooming supplies.

Petco teams up with hip-hop icon Snoop Dogg for an innovative pet-care campaign.
Courtesy: Petco

Petco has partnered with hip-hop icon Snoop Dogg for a new pet-care campaign, the company said Wednesday.
The collaboration features Petco Picks by Snoop, which include toys, treats and grooming supplies, and offers social content showcasing behind-the-scenes footage of Snoop Dogg with pets, including his reflections on being a devoted dog owner, Petco said in a press release. 

“My pets gotta look good, feel good, smell good,” Snoop Dogg said.
The campaign’s first ad showcases Snoop Dogg as the human form of a Doberman Pinscher, a nod to the rapper’s 1993 hit “Who Am I? (What’s My Name)?” from his debut album “Doggystyle.”
In 2022, American pet owners spent about $136.8 billion on their furry friends, a 13.2% increase from the previous year, according to an American Pet Products Association survey.
“We recognize that pet parents want to get the most for their dollars and are seeking compelling deals for high-quality products wherever they can,” said Katie Nauman, Petco’s chief marketing officer, in a news release.
Americans continue to spend money on pets, even during periods of financial constraint, Petco CEO Ron Coughlin said last year.

The cost for pet services, including veterinary care, was up 10.6% year over year in May, according to the U.S. Department of Labor. Pet food costs were up 13.8% during the same period, the department said.
Shares of Petco are down about 9% year to date, lagging competitor Chewy, whose shares are up about 6% so far this year.
Petco relaunched its Vital Care membership program in March 2022 as part of a push to be more competitive in the pet-care market. The company said in an email that the program provides savings and additional benefits for consumers. More

Modelo overtook Bud Light as the top-selling beer in the U.S. in May.
Bud Light sales have sagged following a conservative boycott over its partnership with trans social media influencer Dylan Mulvaney.
Backlash against LGBTQ+ inclusion and marketing by major corporations has increased as state and federal lawmakers increasingly target the rights of trans Americans.

Modelo Especial beer arranged in the Brooklyn Borough of New York, U.S., on Tuesday, Nov. 23, 2021.
Gabby Jones | Bloomberg | Getty Images

Bud Light lost its top spot in the U.S. beer market last month, as the brand’s sales sagged following a conservative uproar over its partnership with transgender social media influencer Dylan Mulvaney.
Constellation Brands’ Modelo led the market as it nabbed 8.4% of beer sales from retail stores in the four weeks that ended June 3, according to NielsenIQ data from consulting firm Bump Williams. Bud Light trailed with a 7.3% share.

Bud Light sales fell 24.6% in the period year over year, while Modelo sales jumped 10.2%, the data shows.
Still, the Anheuser-Busch InBev brand Bud Light leads U.S. beer sales so far this year, according to Bump Williams.
The hit to AB InBev’s business marks one of the few times in recent years that online backlash has led to a notable and sustained slump for a major brand. The company’s shares have dropped nearly 15% since the start of April, when Mulvaney posted a video of a personalized Bud Light can, which sparked anti-LGBTQ+ outrage.
In response to the uproar, the company appeared to neither defend the promotion with Mulvaney — a hesitance that angered some supporters of trans rights — nor appease the conservatives who opposed the marketing.
“We never intended to be part of a discussion that divides people. We are in the business of bringing people together over a beer,” Anheuser-Busch CEO Brendan Whitworth said in a statement in April.

The boycott against Bud Light comes as state and federal politicians increasingly push to claw back the rights of trans people. Hundreds of state laws have targeted trans Americans in recent months, putting further strain on members of an already marginalized group.
Inclusion of and marketing to trans Americans, and LGBTQ+ people more broadly, has grown more common among major companies in recent years. But the increasingly aggressive response to those campaigns has appeared to curb them, at least in some instances.
Target recently pulled some Pride month merchandise after isolated incidents where customers threatened employees over Pride items. And the union representing Starbucks baristas this week claimed employees at dozens of stores were not allowed to put up Pride decorations.
Last month, a spokesperson for Target said the retailer had “experienced threats impacting our team members’ sense of safety and wellbeing while at work” and would remove unspecified “items that have been at the center of the most significant confrontational behavior.”
The spokesperson added Target would focus on “moving forward with our continuing commitment to the LGBTQIA+ community and standing with them as we celebrate Pride Month and throughout the year.”
Starbucks said in a statement it had not changed company policy on the decorations and is encouraging stores to celebrate Pride month. More

“The Flash” arrives in theaters at a time of significant change at DC Studios and amid a string of legal controversies for its star Ezra Miller.
The movie is expected to generate between $75 million to $85 million domestically during its opening weekend.

Ezra Miller at the premiere of “The Flash” held at TCL Chinese Theatre IMAX on June 12, 2023 in Los Angeles, California.
Christopher Polk | Variety | Getty Images

After nearly a decade in development, “The Flash” is finally speeding into theaters this weekend.
The Warner Bros. Discovery feature arrives at a time of significant change at the company and after a string of legal controversies for its star, Ezra Miller.

With a predicted opening in the range of $75 million to $85 million, “The Flash” is expected to be a welcome box-office contribution to the DC Comics franchise. In addition to Miller, it features Michael Keaton and Ben Affleck reprising their Batman roles from earlier films.
Recent entrants — “Black Adam” and “Shazam: Fury of the Gods” — failed to gain traction with audiences, together generating just more that $500 million globally.
“Black Adam” opened to $67 million domestically in October and the “Shazam!” sequel tallied just $30.1 million during its first three days in theaters earlier this year. Both films were widely panned by critics.
“The Flash” has garnered more favorable reviews on its way toward its Friday debut, with several critics ranking it among the best DC movies.
There were fears that the film may never see the light of day after Miller, who goes by the pronouns they and them, made headlines in 2020 for a video that showed them appearing to violently choke a fan. Further incidents of impropriety escalated in 2022, when Miller was arrested and charged with disorderly conduct and harassment at a karaoke bar in Hawaii. Miller was also accused of grooming minors.

Last year, Miller admitted they had “gone through a time of intense crisis” and would undergo treatment for “complex mental health issues” in the way of being charged with felony burglary in Stamford, Vermont. Miller ultimately avoided jail time with a plea deal struck in January.
The actor has largely been absent from the public eye since that time, making a return for “The Flash” premiere in Los Angeles on Monday. They have not done any major interviews or promotions for the film and it has been reported that Warner Bros. does not currently plan any future projects with them.
Ahead of Monday’s screening, Miller addressed the audience at Ovation Hollywood, thanking co-chairs and co-chief executive officers of DC Studios, Peter Safran and James Gunn, for their “grace and discernment and care.”
Safran and Gunn joined forces at DC in November following years of inconsistent box-office performances from the studio. The pair announced a new slate of DC-based films and TV shows in January, including new movies featuring Superman, Batman and Supergirl. Gunn, who just wrapped up a successful run with DC rival Marvel and his “Guardians of the Galaxy” trilogy, is writing and directing “Superman: Legacy.”
“The Flash” — alongside “Blue Beetle,” due in August, and “Aquaman and the Lost Kingdom,” slated for December — mark the last remnants of the old DC Extended Universe (DCEU). More

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased last week to 6.77% from 6.81% the previous week.
Applications to refinance a home loan rose 6% for the week but were 41% lower than the same week one year ago.
Applications for a mortgage to purchase a home increased 8% for the week but were 27% lower than the same week one year ago.

A “For Sale” sign outside a house in Albany, California, US, on Tuesday, May 31, 2022. Homebuyers are facing a worsening affordability situation with mortgage rates hovering around the highest levels in more than a decade.
Joe Raedle | Bloomberg | Getty Images

Mortgage rates pulled back for the second straight week last week, and it was enough to get both current and potential homeowners on the phone with their lenders.
Mortgage application volume rose 7.2% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.77% from 6.81% in the prior week, with points falling to 0.65 from 0.66 (including the origination fee) for loans with a 20% down payment.
Applications to refinance a home loan rose 6% for the week but were 41% lower than the same week one year ago. While rates pulled back, they are still more than a full percentage point higher than they were a year ago and more than twice what they were in the first two years of the Covid pandemic, when there was a refinance boom. Most borrowers today have lower rates than what is currently available and therefore do not want to lose those rates even for a cash-out refinance.
Applications for a mortgage to purchase a home increased 8% for the week but were 27% lower than the same week one year ago.
“Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets,” said Joel Kan, an MBA economist, in a press release. “The average loan size on a purchase loan decreased for the third straight week, as we continue to see more first-time homebuyer activity in the purchase market.”
Mortgage rates haven’t moved much this week, but that could change Wednesday afternoon when the Federal Reserve announces the results of its latest policy meeting and updated rate forecasts.
“Some say the Fed will use those forecasts to telegraph another rate hike or two in 2023. Although the Fed Funds Rate doesn’t directly dictate mortgage rates, such a move would still put quite a bit of upward pressure on interest rates of all shapes and sizes,” wrote Matthew Graham, COO of Mortgage News Daily. More

PGA Tour Commissioner Jay Monahan is taking medical leave for an unspecified amount of time.
The development comes days after the tour announced a deal with onetime rival LIV Golf, which is backed by Saudi Arabia’s investment fund.
Executives Ron Price and Tyler Dennis will lead the tour in Monahan’s absence.

PGA Tour Commissioner Jay Monahan is taking a leave of absence as he recuperates from a medical condition, the organization said in a statement late Tuesday.
“Jay Monahan informed the PGA Tour Policy Board that he is recuperating from a medical situation,” the tour said in a statement. “The board fully supports Jay and appreciates everyone respecting his privacy.”

The tour did not specify the nature of his medical condition or a timetable to return. It will provide further updates “as appropriate,” the tour added.
The news of Monahan’s health problems comes at a critical time. The PGA Tour and Saudi-backed league LIV Golf announced last week their decision to merge business operations to create a new golf entity with money from Saudi Arabia’s Public Investment Fund.
The agreement follows months of litigation and tensions between the golf organizations, prompting doubts about whether the two sides can ultimately pull off a merger. Powerful Democratic Sen. Richard Blumenthal opened an investigation of the agreement. Monahan himself has faced intense criticism over the deal.
During Monahan’s absence, the tour said executives Ron Rice and Tyler Dennis will lead the day-to-day operations.
The PGA Tour is in Los Angeles for the U.S. Open, one of the sport’s major championships. It’s scheduled to kick off Thursday. More