Market Today: Netflix Surges Post-Earnings, UnitedHealth Plummets on Profit Miss

Market Overview

The stock market experienced some fluctuations at the index level due to mixed news and corporate updates. The S&P 500 rose by 0.1%, while the Nasdaq Composite dipped by 0.1%, both moving around their previous closing levels. Meanwhile, the Dow Jones Industrial Average dropped by 1.3%, primarily because of a substantial earnings-related decline in UnitedHealth (UNH, Financial), which is a significant component of the price-weighted average.

Market Performance

- The equal-weighted S&P 500 increased by 0.7%. - The Russell 2000 gained 0.9%. - The S&P Mid Cap 400 rose by 0.8%.Market breadth was positive, with advancing issues surpassing declining ones by a 3-to-1 ratio at the NYSE and a 2-to-1 ratio at the Nasdaq.

Significant Stock Movements

- Eli Lilly (LLY, Financial): The stock surged by 14.3% following positive trial results for its weight-loss drug. - Alphabet (GOOG, Financial): Shares fell by 1.4% after a Reuters report revealed a federal judge's ruling on its illegal monopoly in online advertising technology.

Treasury and Yield

Treasuries ended with losses. The 10-year yield increased by five basis points today, settling at 4.33%, and decreased by 16 basis points over the week.

Year-to-Date Index Performance

- Dow Jones Industrial Average: -8.0% - S&P 500: -10.2% - S&P Midcap 400: -12.1% - Nasdaq Composite: -15.7% - Russell 2000: -15.7%

Economic Data Review

- March Housing Starts: 1.324 million (consensus 1.418 million); prior revised to 1.494 million. - March Building Permits: 1.482 million (consensus 1.455 million); prior revised to 1.459 million.The report highlights a decline in single-unit starts (-14.2%) and permits (-2.0%), likely due to affordability issues from higher mortgage rates and building costs.- April Philadelphia Fed Index: -26.4 (consensus 10.0); prior 12.5The index for new orders dropped sharply to -34.2 from 8.7, indicating a significant decrease in demand. The prices paid index rose to 51.0 from 48.3.- Weekly Initial Claims: 215K (consensus 225K); prior revised to 224K. - Weekly Continuing Claims: 1.885 million; prior revised to 1.844 million.The low level of initial jobless claims suggests the labor market remains robust, which may positively influence April nonfarm payroll forecasts.

Upcoming Economic Data

- March Leading Indicators (prior -0.3%) at 10:00 ET

International Markets

- Europe: DAX -0.5%, FTSE 0.0%, CAC -0.6% - Asia: Nikkei +1.4%, Hang Seng +1.6%, Shanghai +0.1%

Commodities

- Crude Oil: +2.13 @ 63.96 - Natural Gas: -0.01 @ 3.24 - Gold: -13.20 @ 3327.80 - Silver: -0.46 @ 32.45 - Copper: +0.02 @ 4.70

UNH,LLY,GOOG

Guru Stock Picks

Carl Icahn has made the following transactions:

• Reduce in SWX by 21.8%
• Add in IEP by 4.87%

Today's News

Netflix (NFLX, Financial) saw a 4% rise in its stock price after hours, following its first-quarter earnings announcement. The company exceeded expectations with a revenue of $10.54 billion and a diluted earnings per share of $6.61. Despite not reporting quarterly subscriber additions, Netflix highlighted a 13% year-over-year revenue increase and a 27% rise in operating income, attributed to subscription and advertising revenue growth. The operating margin improved to 31.7%, and the company anticipates further gains in the next quarter.

UnitedHealth (UNH, Financial) experienced a significant 22.4% drop in its stock price after posting a rare quarterly earnings miss due to high medical care costs. This led to a downward revision of its full-year profit outlook, affecting the broader health insurance sector, including Humana (HUM, Financial) and Molina Healthcare (MOH, Financial), which also saw declines in their stock prices.

In the tech sector, Google (GOOG, Financial) faced legal challenges as a judge ruled that the company held a monopoly in online advertising technology markets. This decision was based on Google's dominance in publisher ad servers and ad exchanges, violating antitrust laws under the Sherman Act.

Obesity drug developers Structure Therapeutics (GPCR, Financial) and Metsera (MTSR, Financial) recorded sharp gains, buoyed by positive Phase 3 data from Eli Lilly's (LLY, Financial) oral GLP-1 agonist orforglipron. The drug showed promising results in key diabetes markers and weight loss, drawing investor interest in similar therapies under development.

LendingClub (LC, Financial) announced the acquisition of a San Francisco property for $74.5 million, which will serve as its new headquarters starting in Spring 2026. The purchase was fully funded through the company's balance sheet and is not expected to significantly impact its financial performance.

SoFi Technologies (SOFI, Financial) expanded its loan platform business by securing $3.2 billion in new commitments from Fortress Investment Group and Edge Focus. This move aims to meet growing borrower demand for personal loans and shift towards more fee-based revenue sources.

American Express (AXP, Financial) was also under the spotlight, with investors closely monitoring its performance following the release of Netflix's results. The financial services company remains a key component of the Dow 30, contributing to market dynamics.

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