Core Viewpoint - Wall Street analysts have a bearish outlook on UnitedHealth (NYSE: UNH) stock after a significant 23% drop in shares, although there was a slight rebound due to insider buying signaling confidence [1][2] Group 1: Stock Performance and Leadership Changes - Following the resignation of CEO Andrew Witty on May 13, UnitedHealth's stock experienced a sharp decline, which unsettled investors [1][2] - The stock rebounded slightly, rising 4% to $305.25 in pre-market trading after a 6% gain in the previous session [1] Group 2: Financial Outlook and Analyst Revisions - UnitedHealth suspended its 2025 outlook due to rising medical costs in its Medicare Advantage segment and higher-than-expected care activity [2] - Truist Securities analyst David MacDonald reduced the stock price target from $580 to $360, a 37.9% cut, while maintaining a 'Buy' rating [3] - TD Cowen downgraded UnitedHealth shares from Buy to Hold, cutting its price target from $520 to $308, a 40.8% reduction [4] Group 3: Regulatory and Operational Challenges - A Wall Street Journal report indicated that the Department of Justice is investigating UnitedHealth's Medicare Advantage billing practices, which the company denied receiving formal notice about [3] - Analysts noted that UnitedHealth is facing challenges in recapturing target margins in its UnitedHealthcare and Optum Health segments, exacerbated by the DOJ investigation and operational inefficiencies [5][6]

Core Viewpoint - Eli Lilly And Co (NYSE: LLY) has experienced a double downgrade from HSBC, with a price target cut, raising concerns about competition and valuation [1] Group 1: Stock Performance - Eli Lilly's stock is currently trading at $870.31, down 1.6% following the downgrade [1] - Despite the recent decline, the stock has a year-to-date gain of 12.8% and is trading above the 200-day moving average [2] Group 2: Analyst Ratings - Prior to the downgrade, 22 out of 25 analysts had a "buy" or better rating on the stock, with a 12-month consensus target price of $998.05, indicating a 14.3% premium to current levels [1] Group 3: Options Market Sentiment - Short-term options traders are showing bearish sentiment, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.13, which is in the 95th percentile of the past 12 months [3]

Market Overview - Major U.S. stock index futures are down, with Dow futures falling by 0.75%, S&P 500 futures down by 0.64%, and Nasdaq futures decreasing by 0.89% [1] - Technology stocks are experiencing a broad decline, with Apple down by 1.31%, Nvidia down by 1.68%, and Amazon down by 1.08% [1] Company-Specific News - Tesla's stock price target has been lowered by HSBC from $125 to $120, maintaining a "reduce" rating. The analyst cites aging product lineup, increased competition in China, the U.S., and Europe, and brand image issues as negative factors affecting Tesla's performance and future outlook. Tesla's stock is down by 1.71% [1] - Eli Lilly has filed lawsuits against four generic drug manufacturers for allegedly producing and selling unapproved generic versions of its weight loss and diabetes medications. A U.S. judge previously prohibited these manufacturers from producing such generics. Eli Lilly's stock is down by 0.64% [1] - Southwest Airlines announced plans to cut flights in the second half of the year due to declining domestic booking trends and will not reaffirm its profit guidance for 2025 and 2026. The stock is down by 2.82% [2] - IBM's stock fell by over 8% after the cancellation of 15 government contracts due to cost-cutting measures by the Department of Government Efficiency (DOGE), despite reporting better-than-expected earnings and revenue for Q1 2025 [2] - Morgan Stanley raised the stock price target for AT&T from $28 to $31, maintaining an "overweight" rating, following AT&T's Q1 2025 earnings report that exceeded expectations and the announcement of a $10 billion stock buyback plan [2] - Sanofi's Q1 revenue of $9.89 billion fell short of the expected $10.99 billion, leading to a decline in its stock by 1.04% [3] - Texas Instruments reported Q1 earnings per share of $1.28, surpassing the expected $1.06, with revenue of $4.1 billion exceeding the anticipated $3.91 billion. The stock rose by 4.04% [3]

Group 1 - Nvidia's stock has declined by 27% this year, raising concerns about the sustainability of its growth momentum [1] - HSBC analyst Frank Lee expresses caution regarding Nvidia's future stock performance, suggesting limited upside potential [1] - Despite consistently exceeding earnings expectations, Nvidia's earnings and guidance surprises have been shrinking over the past three quarters due to ongoing uncertainties in the Blackwell supply chain [1] Group 2 - The average selling price of Nvidia's GPUs has significantly increased, with gaming GPUs rising from approximately $1,000 to $13,500 for the first-generation AI GPU platform Ampere, and subsequent platforms Hopper and Blackwell seeing increases of 96% and 51% respectively [2] - However, there has been no notable average selling price growth between the B200 and B300 GPUs, as well as between the GB200 and GB300 NVL72 rack architectures, indicating a shift in focus from performance enhancement to incremental improvements [2] - Based on expectations of declining server rack shipment volumes, Lee has revised down the earnings per share estimates for fiscal years 2026 and 2027 by 8% and 18% respectively, aligning with market expectations, and downgraded Nvidia's stock rating from "Buy" to "Hold" with a target price reduction from $175 to $120 [2]