01 Stock Market
The U.S. major indexes closed as follows: the Dow Jones Industrial Average was down 0.83% at 49,003.41; the Nasdaq Composite was up 0.91% at 23,817.10; and the S&P 500 was up 0.41% at 6,978.60. Divergence reflected heavy pressure from health insurers on the Dow, while strength in semiconductors and AI-linked megacaps supported the Nasdaq and S&P 500.
Unusual-move stocks were led by steep declines in managed-care names and notable gains in AI, chips, and silver proxies. Highlights: UNH down 19.61% at $282.70; ORCL down 4.13% at $174.90; TSLA down 0.99% at $430.90. AI and chip leaders firmed: NVDA up 1.10% at $188.52; MSFT up 2.19% at $480.58; AMZN up 2.63% at $244.68; AAPL up 1.12% at $258.27; MU up 5.44% at $410.24; INTC up 3.39% at $43.93; AMD up 0.29% at $252.03. Silver and semis proxies advanced: AGQ up 5.87% at $371.49; SLV up 3.30% at $101.59; SOXL up 7.02% at $64.96; QQQ up 0.91% at $631.13; TQQQ up 2.65% at $56.54; XLK up 1.35% at $148.05. Space and robotics saw outsized moves: RDW up 29.56% at $14.20; RR up 44.62% at $5.51; CRWV up 10.73% at $108.86; GOOG up 0.42% at $335.00; META up 0.09% at $672.97.
Context: insurers tumbled after a weaker Medicare Advantage outlook, while AI infrastructure and memory/storage beneficiaries climbed on upbeat enterprise demand signals; precious metals proxies gained as silver activity surged. Managed-care weakness weighed on the Dow, whereas semis, cloud and hyperscaler beneficiaries supported the Nasdaq. Select defense/space names rallied on contract momentum, and robotics exposure drew interest on AI integrations. Overall breadth favored growth, with pockets of profit-taking in legacy software and selective megacaps.
02 Other Markets
U.S. 10-year Treasury yield rose 0.00%, latest at 4.22.
USD/CNH rose 0.0000%, at 6.95; USD/HKD rose 0.0013%, at 7.80.
U.S. Dollar Index rose 0.0940%, at 95.85.
WTI crude futures rose 0.29%, at 62.57 USD/bbl; COMEX gold futures rose 1.63%, at 5,165.60 USD/oz.
03 Top News
Centers for Medicare & Medicaid Services proposed keeping Medicare Advantage payment growth effectively flat, pressuring private insurers’ margins. The preliminary rate framework implies limited funding relief for plans, challenging benefit design and profitability. Managed-care stocks fell broadly as investors recalibrated expectations. Regulators indicated the policy aims to ensure the program works better for beneficiaries.
UnitedHealth guided to a revenue decline and a smaller Optum Health footprint, signaling a strategic reset with a focus on higher-margin operations. Management outlined plans to shrink membership and “prune back to the core” in care delivery, seeking improved profitability. The company still projects higher operating earnings as it reprices and streamlines businesses. Shares fell sharply as investors weighed near-term revenue headwinds.
Texas Instruments projected quarterly revenue and earnings above estimates, signaling recovering analog chip demand across industrial end-markets. Guidance exceeded consensus, with commentary pointing to inventory normalization and early restocking. As a bellwether for broad electronics demand, the outlook suggested improving conditions beyond advanced logic. Texas Instruments shares jumped 9%.
Seagate forecast results above expectations on robust demand for data storage from AI and hyperscale data centers. Management cited exabyte-scale needs and performance/cost efficiency as drivers for hard disk demand. Revenue and EPS guidance topped consensus, underscoring the AI infrastructure buildout’s pull on storage. Seagate shares jumped 8%.
Meta agreed to pay Corning up to $6 billion for fiber-optic cables to support AI data centers, deepening hyperscaler demand for optical connectivity. Corning is expanding U.S. manufacturing capacity to meet rising orders from Big Tech and AI ecosystems. The agreement underscores critical networking bottlenecks in scaling AI compute clusters.
RTX reported higher quarterly sales and profit on strong engine demand and aircraft maintenance, reinforcing aerospace and defense momentum. Pratt & Whitney benefited from F135 and F100 programs, while Collins saw steady aftermarket activity amid aging fleets. The company guided full-year sales slightly above Street midpoint expectations.
UPS beat holiday-quarter estimates and guided revenue higher as it pivots to higher-value shipments and completes its “Amazon glide-down.” The company emphasized pricing discipline, network optimization, and cost reductions, including facility closures and headcount actions. Management targets sustained margin expansion as the mix improves.
Boeing swung to a quarterly profit, supported by the sale of a navigation software unit and rising jet deliveries, while absorbing a tanker program charge. Production rates for 737 MAX and 787 increased as quality remediation continues. Cash generation improved late in the year, though the company remains focused on certifications and de-risking defense programs.
NextEra posted a small profit beat and reaffirmed multi-year growth targets as U.S. power demand expands with AI/data centers and electrification. The utility and renewables leader added record clean energy and storage to its backlog, reflecting strong long-term offtake. Management reiterated EPS growth ambitions and dividend plans.
General Motors lifted its profit outlook on strong demand for pickups and SUVs, increasing its dividend and authorizing a new buyback. Management expects solid North American earnings despite commodity and FX headwinds, while trimming China losses through restructuring. EV plans remain intact with a sharper focus on cost and capital discipline. General Motors gained 9%.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data
Disclaimer: This content is for reference only and does not constitute investment advice.
