UnitedHealth Group Surpasses Expectations, Shares Soar
In a surprising turn of events, health care giant UnitedHealth Group has exceeded expectations for the second quarter, causing its shares to soar nearly 7%. The company reported strong performance on both the top and bottom lines, leading to an increase in its full-year guidance.
UnitedHealth’s success has also had a positive impact on other health care stocks, with Cigna and Elevance Health seeing an increase of more than 4% each. This indicates that investors have a renewed confidence in the health care sector.
On the financial front, JPMorgan Chase reported stronger-than-expected results for the second quarter. The bank benefited from higher interest rates and better-than-expected bond trading. However, despite the positive news, JPMorgan Chase’s shares fell slightly.
Wells Fargo, on the other hand, experienced a slight rise in shares after surpassing second-quarter expectations. The Wall Street firm also stated that it predicts higher-than-expected net interest income for the year.
Meanwhile, Citigroup saw a 2% drop in its shares, despite reporting second-quarter earnings and revenue that exceeded expectations. Citi’s revenue fell 1% from a year ago, partially due to a decline in markets and investment banking businesses.
In the aviation sector, JetBlue Airways and American Airlines faced a setback as their shares each slid over 2%. The two airlines are no longer selling seats on each other’s flights after being ordered to end their partnership following a court ruling in May.
Turning to technology, Microsoft’s shares rose about 2% after receiving an upgrade to a buy rating from UBS. The software giant’s artificial intelligence opportunities and recent underperformance were cited as attractive factors.
However, not all news was positive. Telecom stock AT&T experienced a nearly 5% decline after being downgraded to neutral from overweight by JPMorgan. The downgrade was due to concerns about competition and limited upside potential due to AT&T’s exposure to cable.
Financial giant State Street also faced challenges as its shares slumped 9.5%. While the company beat earnings expectations, its second-quarter revenue fell short of analyst estimates.
In the asset management sector, BlackRock reported second-quarter earnings that exceeded expectations. However, the company’s net inflows showed a decline, causing the stock to lose 2%.
Aluminum stock Alcoa suffered a 4.9% drop after being downgraded to neutral from overweight by JPMorgan. The firm expressed concerns about downward pressure on the price of the metal.
Insurance company Progressive saw its shares lose 1.5% after being downgraded to equal weight from overweight by Wells Fargo. The downgrade was attributed to concerns about growth.
On a more positive note, pharmaceutical stock Eli Lilly experienced a 3% increase as it announced plans to acquire obesity drug maker Versanis for $1.9 billion.
Overall, the midday trading market saw a mix of ups and downs for various companies across different sectors. Investors are closely monitoring these developments to determine their next moves in the market.
– CNBC’s Yun Li, Alex Harring, Sarah Min, and Michelle Fox contributed to this report.