The Health and Human Services Department announced today that it will require larger, more prominent health warnings on cigarette packs.
The new labels, which would take effect in 2012, could dissuade cigarette buyers by including graphic images and large type outlining the adverse health effects of smoking. The labels could cover up to half of the front and back of each package.
The news is causing investors to question future cigarette sales, and tobacco shares are traded lower on Wednesday. Shares of Altria (MO), producer of Marlboro cigarettes traded lower by about 1.5%, while Reynolds American (RAI) fell 2.2%, and Lorillard (LO) was off about .6%.
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