Progressive Corporation (PGR) stock soared after the insurance company reported strong third-quarter results. Progressive cited improved pricing and increased profitability as factors driving its latest results.
Gold futures (GC=F) are trending higher, having had their best week since March. Geopolitical tensions, such as the conflict between Israel and Hamas, have increased demand for safe assets, driving up prices. Uncertainty drove investors toward gold, while increased volatility led to more options trading.
AMC Entertainment (AMC) stock ended trading lower on Friday after the movie theater chain reported lower-than-expected opening box office receipts for Taylor Swift’s Ellas tour concert film. AMC had moved up the release date by one day due to high demand, which may have affected the event’s ability to maximize marketing and promotion.
Yahoo Finance’s Julie Hyman and Josh Lipton break down today’s trending tickers. For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
video transcript
Julie Hyman: I haven’t talked about it yet, but if you look at the stock price of Progressive, the other individual investment company that we’re looking at on this day, the stock was up 8% on the day to a new all-time high. And that comes after the company reported strong results for September and the third quarter here. And with underwriting profitability improving, the company’s pricing also appeared to be improving. That will help the numbers.
– Well, the last time they reported over the summer, there wasn’t a huge response. But today it’s up significantly, rising more than 8% in today’s trading. We know, for example, that Jeffries liked what they were seeing. What they’ve been communicating to their customers is that their underlying performance has improved significantly year-over-year and month-over-month. It was a very good move today. And its inventory is up about 20% so far this year.
Julie Hyman: Well, one of the other measures that insurance companies look at is called the combined ratio. We are also considering health insurance companies. It basically looks at the losses and expenses against the premiums they brought in. And it was 89.7%. Therefore, the lower the number, the better because you don’t want to spend everything on every premium that comes in. Because they want to keep a portion of their premiums. This is a significant drop from 97% in August. That’s a big improvement on Progressive’s outcome measures.
– Okay, from the insurance company to the yellow metal. By the way, let’s talk about money. We’re having our best week since March. Prices rose this week amid the war between Israel and Hamas. In the midst of this conflict, investors are moving into this sector as a safe haven. That makes sense, Julie, right? When there is war, there is tension, there is conflict, and there is a lot of uncertainty.
We were just discussing whether an Israeli ground attack would escalate the conflict. Will Hezbollah be dragged in? Will it be dragged into Iran? There’s just a lot of uncertainty. And what that means, of course, for the oil and energy markets. When people feel that kind of tension or anxiety, they turn to safe places. And of course, gold will be one of the leading options there.
Julie Hyman: Yes, as I showed on the chart earlier, this is the switch to gold that was heading back towards 1,800. And now he’s back to the 1,900 level, a level we haven’t seen in a while. Here are the charts we looked at this year. It’s very interesting that it made a fairly rapid move after falling to 18, especially considering that gold doesn’t always make such rapid moves. It’s very interesting to see that.
Options trading for the SPDR Gold Stock ETF (GLD) is also rapidly increasing. Implied volatility in options was also the highest since March. So, in effect, there’s another interesting measure there. By the way, the movements that are happening in gold are, of course, not just happening in gold. We’re seeing similar things in other asset classes, with investors looking for safety.
Some would argue that this is fueling the move in utilities, which are seen as a defensive sector. Also, the slight drop in yields we’ve seen this week is because people are buying government bonds, which are again seen as relatively safer investments.
– And with the movement of gold, there are reports that some major technical levels have also been broken. One worth noting.
Julie Hyman: Yes, certainly. Another stock we’re watching is AMC. After a slight spike yesterday, it has plunged about 14% today. I’m trying to figure out exactly what’s going on here. Maybe it’s Taylor Swift’s Ellas Tour movie, which brought in $2.8 million in Thursday previews.
Sounds like a big number. This was lower than the expected $5 million. But it seems to have mostly to do with timing. Swift unexpectedly moved up the film’s release schedule, but an earlier release time could have limited marketing and ticket sales because people didn’t have as much time to get tickets and react.
– Also, Julie, as I read these reports, I’m also impressed by the bold moves of icons like Taylor Swift, who negotiated directly with AMC. Therefore, she bypassed Hollywood studios with her distribution deal. This means that her distribution fee will not be charged and it will probably be even more profitable for her.
Julie Hyman: You know what always annoys me?
– Yeah?
Julie Hyman: Do you think Taylor Swift herself sat down and negotiated?
– I don’t know.
Julie Hyman: Similarly, we always use Taylor Swift as an abbreviation. But how many people are working under her? What she has is–
– I think it’s a machine.
Julie Hyman: She made a good choice in whomever she hires to do this type of work.
– Is she now saying she’s just doing business with Adam Aaron and not at the table? Don’t you think so?
Julie Hyman: perhaps.
– Who can I say? I don’t know.
Julie Hyman: I don’t know. But I don’t think she assumes that she is, right? As you said, it’s a machine around these stars.
– Taylor — I give Taylor the benefit of the doubt. who knows? Maybe she has everything connected.
Julie Hyman: Of course, let’s clear her of any doubts. Oh, so many people do.
