Market Overview - U.S. stock markets are experiencing a pivotal moment with anticipation surrounding the Federal Reserve's interest rate decision and earnings reports from major technology companies [1] - Premarket trading shows a mixed but generally upward trend, with S&P 500 Futures up 0.3% to 7,028.75 points and Nasdaq 100 Futures up 0.6% to 26,228.75 points, while Dow Jones Futures remain flat at 49,159.0 points [2] Semiconductor Industry - U.S. chip stocks are seeing notable gains, with Nvidia increasing by 1.7%, AMD rising by 1.4%, and Intel climbing 4.6%, reflecting strong investor confidence in AI and advanced computing [3] Major Market Indexes - The S&P 500 Index closed at a record high of 6,978.60 points, a 0.41% increase, driven by strength in chipmakers and AI infrastructure stocks, particularly Micron Technology, which announced a $24 billion investment in Singapore [4] - The Dow Jones Industrial Average closed at 49,003.41 points, down 0.83%, primarily due to weakness in the healthcare sector, with UnitedHealth Group forecasting a revenue decline for 2026 [5] - The Nasdaq Composite Index closed up 0.91% at 23,817.10 points, reaching a 2.75-month high, with nearly 30% year-over-year growth attributed to AI advancements [6] Upcoming Market Events - The Federal Reserve is expected to hold its key interest rate steady within the 3.5%-3.75% target range, following three consecutive rate cuts in late 2025, with a focus on the labor market and consumer spending [7] - Major earnings reports are anticipated from tech giants Meta Platforms and Microsoft, which will provide insights into the technology sector's health and AI investments [13] Company News - Infosys announced a strategic AI-focused collaboration, indicating ongoing investment in AI solutions [14] - Boeing's CEO outlined a turnaround plan after six consecutive annual losses, addressing operational challenges [14] - HSBC is scaling back its M&A and equities businesses in Europe, the UK, and the Americas to focus on Asian operations [14] - JetBlue Airways reported a significant Q4 loss and provided weaker-than-expected revenue guidance, raising concerns about profitability [14] - RTX Corporation delivered higher-than-expected Q4 results, showcasing strong growth across its business segments [14]

CHONGQING, CHINA - JANUARY 22: In this photo illustration, a smartphone displays the logo of UnitedHealth Group (NYSE: UNH), an American multinational healthcare company providing health insurance services and healthcare solutions through its UnitedHealthcare and Optum businesses, in front of a screen showing the company's latest stock market chart on January 22, 2026, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)Getty ImagesUnitedHealth Group (NYSE: UNH) announced its Q4 2025 earnings ...

Core Insights - Elevance Health reported fourth quarter and full year 2025 results, showing disciplined execution in a dynamic environment and a focus on advancing affordability and healthcare accessibility for members [2][4]. Financial Performance - Operating revenue for Q4 2025 was $49.3 billion, a 10% increase from Q4 2024, while total operating revenue for 2025 reached $197.6 billion, up 13% year-over-year [4][11]. - The operating gain for Q4 2025 was $0.3 billion, with an adjusted operating gain of $0.4 billion, reflecting a decrease compared to the previous year [4][12]. - The benefit expense ratio increased to 93.5% in Q4 2025, up 110 basis points from the prior year, driven by higher medical costs [5][25]. Segment Performance - The Health Benefits segment generated $41.8 billion in operating revenue for Q4 2025, an 11% increase compared to Q4 2024, with a full year revenue of $167.1 billion, also up 11% [10][11]. - Carelon segment reported operating revenue of $18.7 billion in Q4 2025, a significant increase of 27% year-over-year, driven by growth in CarelonRx and Carelon Services [15][29]. Membership Metrics - Medical membership totaled approximately 45.2 million as of December 31, 2025, a decrease of 0.5 million or 1% year-over-year, primarily due to attrition in the Medicaid business [13][22]. Cash Flow and Shareholder Returns - Operating cash flow for 2025 was $4.3 billion, approximately 0.8 times GAAP net income, with cash and investments at the parent company totaling $2.6 billion as of December 31, 2025 [8][26]. - The company repurchased 1.4 million shares for $471 million in Q4 2025 and declared a quarterly dividend of $1.71 per share, totaling $377 million in cash distribution [9][17].

Core Insights - Several U.S. politicians sold UnitedHealth stock shortly before a significant market crash on January 27, 2026, raising concerns about the timing of these transactions [1][6][10] Group 1: Stock Performance and Market Impact - UnitedHealth experienced a dramatic loss of approximately 19% in a single trading session, closing at $282.70, which contributed to a nearly 50% decline in its stock value over the past year [2][9] - The company's market capitalization was significantly affected, erasing tens of billions of dollars and dragging down the Dow Jones Industrial Average [1] Group 2: Revenue Guidance and Financial Concerns - UnitedHealth's revenue guidance for 2026 was projected at about $439 billion, falling short of Wall Street estimates of $454 to $456 billion, which contributed to the stock's decline [9] - Rising medical costs and weaker earnings, along with proposed Medicare Advantage payment increases of only 0.09% for 2027, further exacerbated the situation [9] Group 3: Congressional Stock Transactions - Notable transactions included Rep. Kevin Hern selling UnitedHealth shares valued between $250,001 and $500,000 on December 23, 2025, just weeks before the stock's plunge [3][6] - Rep. Julie Johnson sold shares twice in November and December 2025, with each sale ranging from $1,001 to $15,000, occurring while the stock was still perceived as a defensive play [7] - Rep. Gilbert Cisneros sold shares on November 12, 2025, and later purchased shares on December 19, 2025, shortly before the company's outlook worsened [8]

This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: Elevance became the second major insurer to predict declining revenue in 2026 on Wednesday, as for-profit payers continue to shave off members to try and recover margins. The Indianapolis-based insurer estimated its operating revenue will drop by a low-single digit percentage next year. The guidance comes one day after UnitedHealth forecast an ...

Core Viewpoint - Michael Burry has made a strategic investment shift from UnitedHealth Group to Molina Healthcare, betting on Molina's resilience in the face of regulatory challenges in the healthcare sector [1][3]. Group 1: Investment Strategy - Burry liquidated his stake in UnitedHealth Group in Q3 2025 and heavily invested in Molina Healthcare [1]. - Molina's stock experienced an 8% drop, but it performed better than major competitors like UnitedHealth and Humana, which saw declines of 19% and 21% respectively [2][6]. - Burry's investment in Molina is characterized as a contrarian play, with him labeling it a "generational buy" [3]. Group 2: Financial Performance - Approximately 75% of Molina's revenue is derived from Medicaid, which has allowed the company to maintain profitability despite competitors facing losses in similar contracts [4]. - Molina has demonstrated disciplined operations and conservative accounting practices, contributing to its financial stability [4]. Group 3: Market Position and Future Outlook - Burry's exit from UnitedHealth occurred just before a significant 20% drop in its stock price, indicating timely decision-making [7]. - Molina's stock broke above its 100-day moving average and entered a winning streak, surging over 13% in early January [7]. - Burry has suggested that Molina could be an attractive acquisition target, indicating a strong potential for long-term growth [7].

Market Overview - The NASDAQ 100 has seen a fifth consecutive day of gains, rising approximately 1% [1] - Despite the rally, a majority of stocks are in the red, indicating a narrowing of the rally's breadth [2] - The Bloomberg Dollar Index has decreased by about 0.7%, reflecting a trend of lower dollar value amidst rising equity prices [1][2] Bond Market Insights - The 30-year bond yield in the U.S. is approaching its highest levels in a decade, which is attracting long-term investors [4] - Bond funds are starting to show a steeper curve, indicating renewed interest from portfolio managers [5] - Current market conditions suggest a Goldilocks economic scenario, with expectations for continued growth but uncertainty about future pricing [6] Currency and Inflation Trends - The U.S. dollar's softness is perceived as a potential manipulation by the government, which may welcome a weaker dollar [7][8] - The Federal Reserve's actions, including replacing Treasury bills with reserves, contribute to a narrative of a weaker dollar and inflationary pressures [9] Investment Opportunities - U.S. investors are finding attractive yields in international markets, particularly in countries like New Zealand and Australia, where bond yields are higher than U.S. credit [11] - The luxury goods market is experiencing mixed results, with watches and jewelry showing growth while fashion and spirits face challenges [41][43] Company-Specific Developments - Starbucks is expected to report earnings soon, with a focus on U.S. transaction growth and long-term guidance [30][31] - LVMH's luxury fashion division is struggling, with a noted decline in organic sales growth, particularly in fashion and spirits [41][48] - The company is diversifying its portfolio, with growth in watches and jewelry, indicating a shift in consumer spending behavior [43][44]

Market Performance - The Nasdaq and S&P 500 opened positively, with the S&P 500 reaching a new all-time closing high of 6978, up by +0.41% [1] - The Dow Jones Industrial Average fell by -408.99 points, or -0.83%, primarily due to a -19% loss in UnitedHealth (UNH) following mixed Q4 results [1] Economic Reports - The Case-Shiller Home Prices for November showed a slight improvement, with a +1.4% increase, and house prices rose +0.6% month over month and +1.9% year over year, although these figures lag behind the +2.7% inflation rate [2] - Consumer Confidence for January dropped significantly to 84.5, down nearly 10 points from a revised December figure of 94.2, indicating levels typically associated with an impending recession [4][5] Company Earnings - Texas Instruments (TXN) reported Q4 earnings of $1.27 per share, missing estimates by 3 cents, with revenues of $4.42 billion also falling short of expectations [6] - F5 (FFIV) exceeded earnings expectations with $4.45 per share on revenues of $822 million, leading to a +13% increase in after-hours trading [7] - Seagate Technologies (STX) reported fiscal Q2 earnings of $3.19 per share on revenues of $2.83 billion, surpassing estimates, although shares fell -1.3% after a significant year-to-date increase of nearly +35% [9]

The Nasdaq led US stock futures higher on Wednesday as AI trade fervor spread ahead of the Federal Reserve’s latest policy decision and earnings from megacap techs. Contracts on the tech-heavy Nasdaq 100 (NQ=F) climbed about 0.9%, while those on the Dow Jones Industrial Average (YM=F) hovered below the flat line. S&P 500 futures (ES=F) moved up 0.3% on the heels of an all-time closing high. Techs are set to buoy markets again as a surprise record surge in orders for ASML's (ASML) chipmaking machines sto ...

Group 1: Impact on Health Insurers - The largest health insurers, including UnitedHealth and Humana, saw shares drop over 20%, while CVS Health (owner of Aetna) fell 14% due to proposed flat reimbursement rates for Medicare Advantage plans in 2027, significantly below Wall Street's expected increase of 4% to 6% [2] Group 2: Winners from Trump's Policies - General Motors reported better-than-expected profits, with shares rising 8.75%, benefiting from a more lenient stance on environmental regulations that allows for increased sales of gas-powered vehicles without needing to purchase electric vehicle credits [4] - Nucor, a North Carolina-based steel producer, experienced a 2.3% drop in shares following earnings but is up 42% over the past year, benefiting from the expansion of Section 232 tariffs that reduced U.S. finished steel imports [6]