CVS stock slumps as Blue Shield of California drops company as pharmacy-benefits manager

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Other stock market gains helped offset a 9.2% drop for CVS Health.

Wall Street is holding a bit steadier Thursday, and stocks are mixed following their sharp two-day slide.

The 10-year Treasury, which is the centerpiece of the bond market, is now yielding 4.30% after touching its highest level since October earlier in the morning. Yields have been on the rise as more reports show the U.S. economy remains remarkably resilient. On the upside for markets, the data means the economy has been able to avoid a long-predicted recession. But on the downside, it could also keep upward pressure on inflation. That would give the Federal Reserve reason to keep interest rates higher for longer.

Inflation has cooled considerably from its peak above 9% last summer. But consumers still paid prices that were 3.2% higher in July than a year earlier, and economists say the last stretch to get inflation down to the Fed’s 2% target may prove to be the most difficult.

 

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CVS stock plunges after Blue Shield of California drops company's PBM to save on drug costsBlue Shield’s announcement hints at the potential for health insurers to abandon the traditional PBM system.
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