S&P 500 Gains and Losses Today: UnitedHealth Stock Drops After Earnings Miss, Guidance Cut
Key Takeaways
Major U.S. equities indexes were mixed on the final day of an abbreviated trading week, with markets set to remain closed on Good Friday.
The S&P 500 ended Thursday’s session with a minor gain of 0.1%. The Dow slid 1.3%,
dragged down by a steep decline
for health insurance constituent UnitedHealth Group (
UNH
). After fluctuating for much of the day, the Nasdaq closed 0.1% lower.
Eli Lilly (
LLY
) shares notched the S&P 500’s top daily performance, surging 14.4% after the pharmaceutical giant released
promising results from a clinical trial
of its experimental oral weight-loss treatment. According to Lilly, the first in a series of Phase 3 trials revealed that orforglipron was more effective than a placebo at causing weight loss and reducing A1C, a long-term gauge of blood sugar levels. The company expects to seek Food and Drug Administration (FDA) approval next year for orforglipron as a type 2 diabetes treatment.
Dollar Tree (
DLTR
) shares added 8.1% on Thursday. The stock trended higher in April, and analysts suggested that the discount retailer could be poised for strength amid the challenging macroeconomic backdrop. For instance, Citi
upgraded Dollar Tree stock last week
, suggesting that the company could emerge as an unlikely beneficiary of broadly applied tariffs, with flexibility to raise prices without deterring too many customers and a track record of success during previous downturns.
Crude oil futures prices pushed higher for the second straight day after the U.S. announced additional sanctions targeting Iran’s oil business. The uptick in oil prices helped lift a variety of oil and gas stocks. Shares of exploration and production firm Diamondback Energy (
FANG
) gained 5.7%, while shares of oilfield services provider Halliburton (
HAL
) advanced 5.1%.
Shares of UnitedHealth plummeted 22.4% after the insurance giant reported lower-than-expected sales and profits for the first quarter.Ā It was the heaviest decline in the Dow and the S&P 500. The company also
reduced its full-year profit guidance
. Other health insurance stocks also lost ground, with shares of Humana (
HUM
) falling 7.4%.
Snap-On (
SNA
) shares sank 8.0% after the maker of hand tools and other professional equipment
missed quarterly sales and profit estimates
. The company noted that the macroeconomic environment weighed on its performance, with the uncertain outlook making customers more reluctant to purchase financed goods.
Global Payments (
GPN
)Ā agreed to
acquire rival payment processing firm Worldpay
from current stakeholders Fidelity National Information Services (
FIS
) and private equity firm GTCR. Although Global Payments stressed the size and worldwide reach that will result from its combination with Worldpay, shares of the fintech firm plunged 17.4% on Thursday. FIS shares fared much better, jumping 8.7%.
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