Earnings Heat Up as Tech Leads Markets Toward Records

U.S. stock futures moved higher, putting the market near record levels, as a busy earnings week got off to a strong start. Technology stocks led the gains, while investors also waited for the Federal Reserve’s interest rate decision later this week.

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Major Indexes: S&P 500 higher, Nasdaq higher, Dow lower, Russell 2000 flat

Leading Sectors: Technology, Consumer Discretionary

Lagging Sectors: Health Care, Utilities, Consumer Staples

UnitedHealth Group (UNH): Reported full-year results showing very large revenue and solid adjusted earnings, but took a major one-time charge tied to restructuring and a cyberattack. Fourth-quarter earnings beat expectations, though revenue was slightly light. The company also gave a strong outlook for next year, but investors focused on the charges and broader Medicare payment concerns.

Humana (HUM): Shares fell after the government proposed much smaller-than-expected increases to future Medicare Advantage payments, raising concerns about profitability across the industry.

CVS Health (CVS): Declined alongside other health insurers after the Medicare Advantage payment proposal signaled slower reimbursement growth than investors expected.

Alignment Healthcare (ALHC): Dropped due to the same Medicare Advantage payment proposal, which could pressure future revenue and margins.

Corning (GLW): Rose after announcing a major long-term deal with Meta (META) to supply fiber-optic cable for AI data centers, potentially worth billions over the rest of the decade.

General Motors (GM): Reported better-than-expected earnings and issued an upbeat long-term outlook. The company raised its dividend and announced a large share buyback, even as it disclosed EV-related charges that weighed on recent results.

Boeing (BA): Declined after posting quarterly revenue that topped expectations. Management struck an optimistic tone about the company’s outlook.

American Airlines (AAL): Moved higher after forecasting revenue growth and improving earnings trends this year, despite missing expectations in the most recent quarter.

United Parcel Service (UPS): Advanced after reporting quarterly earnings and revenue that both exceeded analyst expectations.

Nucor (NUE): Fell after earnings and revenue came in below expectations, even though the company said it expects stronger results across its business segments going forward.

Sanmina (SANM): Dropped following its earnings report, as investors reacted cautiously due to limited analyst coverage and comparability.

Salesforce (CRM): Rose after announcing it won a large, long-term contract with the U.S. Army.

Pinterest (PINS): Slipped after announcing plans to reduce its workforce and office space as it shifts more aggressively toward artificial intelligence.

AGNC Investment Corp (AGNC): Reported a profitable quarter and full year, increased its tangible book value, and delivered a solid return for shareholders, though adjusted earnings missed estimates.

Brown & Brown (BRO): Fell after reporting strong revenue growth but weaker organic growth. The company also announced the passing of its chief legal officer and named an interim replacement.

W.R. Berkley (WRB): Posted earnings that beat expectations and highlighted record operating income and underwriting results. Management said it plans to keep expenses well controlled despite higher competition and technology investments.

RTX (RTX): Reported strong quarterly and full-year results and issued a positive outlook for next year, with sales and earnings guidance slightly ahead of expectations.

Synchrony Financial (SYF): Reported quarterly results, declared its next dividend, and released updated credit performance data, which showed ongoing pressure in consumer credit trends.

Northrop Grumman (NOC): Delivered better-than-expected earnings and revenue, issued solid forward guidance, and reported a record backlog of future defense orders.

Commvault (CVLT): Posted record quarterly revenue and strong growth in recurring revenue but updated guidance in a way that disappointed investors.

Reddit (RDDT): Shares fell after the company disclosed that its chief technology officer sold a portion of his stock in recent transactions.

ProPetro (PUMP): Declined after pricing an upsized public stock offering, which will be used to fund growth and general corporate needs.

Cloudflare (NET): Rose after an analyst reaffirmed a positive view on the company, citing strong growth tied to AI-driven security demand.

HCA Healthcare (HCA): Posted strong quarterly earnings and revenue growth, issued guidance for next year, and authorized a large new share repurchase program.

Kimberly-Clark (KMB): Reported steady earnings and organic sales growth, issued its outlook for next year, and raised its quarterly dividend as it continues operational improvements.

(Stocks showing elevated volume and notable price movement)

Gainers: PTRN, ZM, CGON

Losers: MKC, MMYT, CEG, MNDY, FIG

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consider consulting a financial professional before making investment decisions.