Market Overview - The S&P 500 closed at a record high, up about 28 points or 0.4%, while the Nasdaq increased by approximately 0.9%. The Dow Jones Industrial Average saw a decline of about 0.8% [7] - Nine sectors in the S&P 500 were in the green, with big tech stocks performing well, up by about 1.4%. The healthcare sector, however, faced a decline of about 1.7% [8] Texas Instruments Earnings - Texas Instruments reported a fourth-quarter EPS of $1.27, missing the Street's estimate of $1.30, and showing a year-over-year decline [10] - Revenue grew by about 10% to $4.42 billion, in line with estimates, with 14% growth in the analog business and 8% growth in embedded processing [11] - The company invested $3.9 billion in R&D and $4.6 billion in CapEx over the past 12 months, returning $6.5 billion to owners [13] Seagate Earnings - Seagate's second-quarter revenue was reported at $3 billion, slightly above estimates of $2.75 billion, with adjusted EPS of $3.11, beating the estimate of $2.83 [20] - Despite positive revenue and EPS results, the stock declined by 3.2% in after-hours trading, likely due to forecast concerns [21] Healthcare Sector Impact - Medicare Advantage payment rates are set to rise by only 0.09% next year, surprising the market and negatively impacting healthcare stocks [9] - UnitedHealthcare, CVS, and Humana saw significant declines, with UnitedHealth down 19.6%, CVS down 14%, and Humana down over 21% [22] Other Notable Stocks - Corning's stock rose by about 16% after announcing a multiyear agreement worth up to $6 billion with Meta for optical fiber and connectivity solutions [17] - HCA Healthcare shares increased by about 7% after better-than-expected guidance eased investor concerns regarding expiring Affordable Care Act subsidies [19] - JetBlue reported a wider loss than expected, leading to a 6.9% decline in its shares [23] - Pinterest announced layoffs of less than 15% of its workforce, resulting in a 9.6% drop in its stock [24]

>> THIS IS "BLOOMBERG BUSINESS WEEK DAILY" WEEK. REPORTING FROM THE MAGAZINE THAT HELPED GLOBAL LEADERS STAY AHEAD, WITH INSIGHT ON THE PEOPLE, COMPANIES AND TRENDS SHAPING TODAY’S COMPLEX ECONOMY, PLUS GLOBAL BUSINESS, FINANCE, AND TECH NEWS AS IT HAPPENS. "BLOOMBERG BUSINESS WEEK DAILY" WITH CAROL MASSAR AND TIM STENOVEC, LIVE ON BLOOMBERG RADIO, TELEVISION, YOUTUBE AND BLOOMBERG ORIGINALS.CAROL: GOOD AFTERNOON, EVERYBODY. YES INDEED, IT IS THE TUESDAY EDITION, OR THE PRE-FED DECISION, I SHOULD SAY, OF "B ...

Core Viewpoint - UnitedHealth is experiencing a significant stock decline of approximately 20% following its warning of an expected annual revenue decrease for the first time in over 30 years, impacting its market value and the broader managed-care sector [1][2]. Financial Performance - The company reported fourth-quarter 2025 revenue of about $113.2 billion, reflecting a year-over-year increase of over 12%, but net income fell sharply to around $10 million, or 1 cent per share, due to $1.6 billion in after-tax restructuring charges [5]. - Adjusted earnings per share for the quarter were $2.11, aligning with forecasts but down significantly from $6.81 a year earlier, attributed to rising medical costs and other operational challenges [5]. Revenue Outlook - For full-year 2025, UnitedHealth anticipates revenue of approximately $447.6 billion, representing a 12% increase year-over-year, but projects a revenue decline of about 2% for 2026, with expectations of "greater than" $439 billion, falling short of analyst estimates of around $454 billion [2][3]. - The company aims for adjusted earnings per share of at least $17.75 for 2026, indicating high-single-digit profit growth despite the anticipated revenue dip [3]. Market Reaction - The stock market response was severe, with UnitedHealth shares dropping to around $282 from a previous close of approximately $352, marking one of the largest single-day declines in the company's history [4]. - This decline also negatively affected other major players in the Medicare Advantage sector, such as Humana, following disappointing proposals for government payment rates for 2027 [4]. Strategic Focus - UnitedHealth's executives emphasized the need for short-term sacrifices to reposition the business for future stability and growth, with plans to refocus on core markets and streamline operations under new leadership [6]. - The company expressed confidence in returning to growth in 2026, despite current challenges related to medical costs and care activity for new Medicare Advantage beneficiaries [6].

Core Viewpoint - The stock prices of U.S. Medicare insurance companies have declined in pre-market trading following a proposal to slightly increase payment rates to these companies [1] Company Performance - Humana's stock dropped by 17% [1] - Elevance Health's stock fell by 8% [1] - Centene's stock decreased by 7.7% [1] - Molina Healthcare's stock declined by 7.3% [1]

Core Viewpoint - Shares of major health insurance companies experienced significant declines in premarket trading following a proposal from the Trump administration to maintain flat Medicare payment rates in 2027, which did not meet Wall Street expectations [1][3]. Group 1: Stock Performance - UnitedHealth Group's shares fell nearly 9% to $317.51 [2] - CVS Health's stock price dropped 9.38% to $76 [2] - Centene's stock price decreased to $44.26, down 4.36% from the previous close [2] - Elevance Health's shares declined nearly 7% to $350.93 [2] - Humana's shares were the most affected, falling to $229, down more than 13.1% from Monday's closing [2] Group 2: Medicare Payment Rate Proposal - The Centers for Medicare & Medicaid Services proposed a 0.09% increase in Medicare Advantage payment rates for 2027, significantly lower than analysts' expectations of a 4-6% increase [3] - The previous year's increase was 5.06%, which exceeded forecasts [3] - The lower proposed increase follows President Trump's criticism of insurance companies, indicating a desire for them to earn less [3] Group 3: Official Statement - CMS Administrator Dr. Mehmet Oz stated that the proposed payment policies aim to ensure that Medicare Advantage functions better for the beneficiaries it serves [4]

The shares of UnitedHealth, Humana and other health insurers were clobbered on Tuesday after a preliminary payment proposal for Medicare Advantage fell way short of analyst expectations. ...

Core Viewpoint - The ongoing lawsuit against Humana Inc. involves allegations of securities law violations, particularly regarding the company's assurances about healthcare demand and profitability amidst rising medical costs due to pent-up demand following COVID-19 restrictions [2][3]. Group 1: Lawsuit Background - A Humana investor filed a lawsuit in June 2024, claiming that the company misled investors about the impact of pent-up demand for healthcare services on its financial performance [2]. - The lawsuit alleges that Humana downplayed the pressures on its adjusted EPS from increased medical costs, contrary to its assurances that there was no significant pent-up demand affecting utilization rates [2]. Group 2: Legal Proceedings - A consolidated amended complaint was filed on November 20, 2024, and the defendants submitted a motion to dismiss the complaint on April 24, 2025 [3]. - Investors who purchased shares of Humana Inc. prior to July 2022 are encouraged to contact the Shareholders Foundation for potential options related to the lawsuit [1][3].

Core Insights - Humana Inc. has partnered with Atlas Oncology Partners to enhance cancer care for Medicare beneficiaries, starting January 1, 2026, in Tennessee and Mississippi [1][9] Group 1: Partnership and Care Model - The Atlas Oncology care model offers a comprehensive suite of services to support patients throughout their cancer treatment journey, including on-site and virtual clinical support [2][9] - The model features locally managed interdisciplinary teams that provide high-value, wrap-around services, including proactive care coordination and counseling to address barriers to care [2][4] Group 2: Benefits and Impact - The partnership aims to improve health outcomes for Humana's Medicare Advantage members with cancer, potentially retaining existing customers and attracting new ones [6] - Increased adoption of Humana's plans is expected to boost its Medicare Advantage membership base, which stood at 5.8 million as of September 30, 2025, and contribute to higher premium revenues, which advanced 9% year over year in the first nine months of 2025 [7] Group 3: Market Performance - Humana's shares have increased by 23.5% over the past six months, outperforming the industry growth of 12.7% [8]

Core Viewpoint - Humana Inc. is set to release its financial results for the fourth quarter of 2025 on February 11, 2026, along with management remarks in PDF format [1] Financial Results Announcement - The financial results will be available at 6:00 a.m. Eastern time on the specified date [1] - A live question-and-answer session will take place at 8:00 a.m. Eastern time to discuss the quarterly results and earnings guidance for 2026 [1] Access to Information - A webcast of the 4Q25 earnings call can be accessed through Humana's Investor Relations page [1]

Core Viewpoint - Health insurance companies experienced a slight increase in stock prices after market hours on January 9, with notable gains among major players in the sector [1] Company Performance - UnitedHealth's stock price rose by 0.8% [1] - CVS Health Group's stock price increased by 0.4% [1] - Humana's stock price saw a rise of 0.9% [1] - Centene's stock price also increased by 0.9% [1]