Yahoo Finance

Key Takeaways

• The S&P 500 slid 0.2% on Thursday, Jan. 16, 2025, losing momentum after posting solid gains driven by earnings and inflation optimism in the previous session.

• UnitedHealth shares dropped as slumping revenue and increasing medical costs weighed on the health insurer's quarterly results.

• Several research analysts highlighted positive catalysts for Dexcom, and shares of the medical device maker pushed higher.

Major U.S. equities indexes ticked lower on Thursday, failing to gain ground a day after soft inflation data and an upbeat start to earnings season helped drive a strong rally.

The S&P 500 slipped 0.2%, ending a streak of three straight positive trading sessions. The Dow was also down 0.2%, while the tech-heavy Nasdaq Composite fell 0.9%.

UnitedHealth Group (UNH) shares dropped 6.0%, posting the heaviest daily loss in the S&P 500, following the healthcare giant's first earnings release since last month's fatal shooting of insurance unit chief Brian Thompson. Although quarterly profits came in ahead of expectations, UnitedHealth reported lower-than-expected revenue. An increase in medical costs also contributed to a year-over-year uptick in the firm's medical cost ratio, which compares medical expenses to total revenue.

Shares of US Bancorp (USB) plunged 5.6%. The move lower came after the financial services firm reported mixed quarterly results, topping adjusted profit estimates but falling short of forecasts for its net interest margin, a key measure of a bank's effectiveness in lending its capital.

Texas Instruments (TXN) shares sank 5.1% after reports that China's Commerce Ministry is launching an investigation into the legality of U.S. subsidies for chipmakers that create competitive challenges for Chinese products. With a focus on lower-end semiconductors like power and analog chips, Texas Instruments could face repercussions if Chinese officials determine the company has violated anti-dumping regulations.

Shares of Dexcom (DXCM), a manufacturer of glucose-monitoring devices for patients with diabetes, gained the most of any S&P 500 stock on Thursday, jumping 5.5%. Analysts at Piper Sandler highlighted several bullish catalysts for Dexcom, including a stable outlook for its durable medical equipment (DME) channel and the approval of reimbursement for 5 million patients with type 2 diabetes who do not use insulin. In addition, Baird analysts boosted their price target on Dexcom stock, noting improvements in salesforce productivity and growth potential in U.S. markets.