Stocks tumbled Friday as a big decline in shares of UnitedHealth weighed heavily on the Dow Jones Industrial Average and investors reacted to disappointing economic data.
The Dow and S&P 500 each closed 1.7% lower, while the tech-heavy Nasdaq Composite dropped 2.2%, finishing near session lows as losses accelerated during afternoon trading. The major indexes—which were coming off a down session on Thursday after two straight days of gains that boosted the S&P 500 to record highs—posted steep losses for the holiday-shortened trading week and are now in negative territory for the month.
The Dow fell 2.5% this week, its biggest drop since the week of Oct. 25. The Nasdaq also slid 2.5% this week, its largest decline in three months, while the S&P 500, which was down 1.7% for the week, turned in its weakest performance since the week of Jan. 10.
UnitedHealth Group (UNH) shares sank more than 7% after the Wall Street Journal reported that the Department of Justice is investigating the health insurer’s Medicare billing practices. Shares of other insurers, including CVS Health (CVS), Humana (HUM) and Centene (CNC), also lost ground.
Shares of the world’s largest technology companies were down across the board, led by a near-5% decline for EV maker Tesla (TSLA). AI chipmaker Nvidia (NVDA), which is due to report quarterly results next week, dropped 4%, while Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), Meta Platforms (META) and Broadcom (AVGO) also retreated.
A handful of stocks made big moves after the release of earnings reports. Akamai Technologies (AKAM), a cybersecurity and cloud computing company, plunged 22% to lead S&P 500 decliners, while cloud storage provider Dropbox (DBX) and fintech company Block (XYZ) each slid more than 16%. Among post-earnings gainers, energy drink-maker Celsius Holdings (CELH) soared 28% and e-commerce company MercadoLibre (MELI) jumped 7%.
Coinbase (COIN) dropped more than 8% after rising as much 4% early in the session following news the Securities and Exchange Commission is expected to drop an enforcement case against the crypto exchange.
Bitcoin was at $95,900 in late-afternoon trading, after rising as high as $99,500 earlier in the day, its highest level since Feb. 4.
The yield on 10-year Treasurys, which is correlated with expectations about where interest rates are headed, was at 4.43%, down from 4.50% at yesterday’s close and trading near its lowest level of the month as investors digested economic data released this morning.
Existing home sales numbers came in lower than economists expected as mortgage rates and prices keep many would-be buyers from the market, while a separate report showed that consumer confidence has been shaken by long-term inflation expectations and the uncertainty about tariffs.
Gold futures were down sightly at around $2,950 an ounce, after hitting a record high on Thursday, while West Texas intermediate crude oil futures slid 3% to $70.25 per barrel.
Biggest S&P 500 Movers on Friday
5 hr 59 min ago
Decliners
- Shares of cloud services provider Akamai Technologies (AKAM) plunged the most of any S&P 500 constituent, falling by 21.7%. The company reported quarterly results that met or exceeded analyst expectations, but its 2025 revenue outlook came up short. While the company laid out an ambitious long-term revenue goal of 10% growth, it also expects a 10% decline in services revenue this year, raising questions about whether the tech firm can provide near-term growth.
- Shipping giant Old Dominion Freight Line (ODFL) fell 8.5% on worries that Amazon’s (AMZN) efforts to expand its freight shipping could undercut demand for its services.
- Nuclear energy providers also saw their stocks decline after federal government energy regulators said it would be 2026 before rules are ready that would allow power providers to put facilities on-site at data centers. Investors worried the delay in regulatory certainty could prevent some companies from signing deals now. GE Vernova (GEV) fell by 8.8%, while Constellation Energy (CEG) was down 8.1%, and Vistra (VST) shares declined by 7.8%.
Advancers
- Shares of Covid-vaccine maker Moderna (MRNA) jumped 5.3% and were the best performer in the S&P 500 after a new coronavirus was reportedly discovered in bats in China. The rebound comes after declines in the prior session when the drugmaker reported wider-than-expected losses on weak vaccine demand.
Adam Glanzman / Bloomberg / Getty Images
- Tylenol maker Kenvue (KVUE) shares moved up 4.2% amid reports that the consumer health care company may be a target for a takeover.
- Stock of food makers and other consumer staples moved higher as traders looked for safe plays amid the broad market selloff. Shares of Hershey (HSY) rose 4.1%, while Banquet frozen dinner maker Conagra Brands (CAG), Nabisco parent Mondelez International (MDLZ), soup seller Campbell’s (CPB) and cereal maker General Mills (GIS) were similarly higher.
Walmart Levels to Watch After Recent Slide
6 hr 19 min ago
Walmart (WMT) shares fell Friday after recording their largest one-day loss in more than a year yesterday following the release of a disappointing outlook from the retail giant.
Walmart shares have trended higher in an orderly ascending channel since March last year. However, more recently, the price ran into selling pressure near the pattern’s upper trendline after setting a record high, with selling accelerating after the retailer’s earnings report and lackluster guidance.
It’s also worth pointing out that Thursday’s earnings-driven drop occurred on the highest daily volume since May, indicating conviction behind the selling.
Investors should monitor crucial support levels near $90, $86, and $81, while also watching a key overhead area near $105.
The stock fell 2.5% to $94.78 today after plunging more than 6% on Thursday. Despite their recent decline, Walmart shares have gained 64% over the past 12 months, boosted in part by the retailer’s ability to attract higher-income consumers seeking value on essential items.
Read the full technical analysis piece here.
Did Coronavirus News Move Vaccine-Maker, Travel Stocks?
7 hr 3 min ago
Concerns about coronavirus news out of China may have moved some vaccine-maker and travel stocks Friday.
Shares of Moderna (MRNA), Pfizer (PFE) and Novavax (NVAX) all gained Friday, a broadly downbeat session that saw the S&P 500 slide 1.7%. Moderna was the biggest gainer on the benchmark index, rising more than 5%. Some stocks associated with international travel, meanwhile, retreated: Norwegian Cruise Lines (NCLH), which fell more than 6%, was among the index’s top decliners.
Some of the share moves may be attributable to investors’ assessment of reports from the South China Morning Post, Daily Mail and other outlets saying that a team of Chinese researchers in a scientific journal said it identified a bat coronavirus that might be able to move from animals to humans.
Asked about the reports on CNBC Friday, former FDA Commissioner Scott Gottlieb said that “we find these things pretty routinely” and “I think the link to an imminent risk here is pretty flimsy, quite frankly.”
The moves came as stock markets were buffeted by a range of other forces. Reports that the Justice Department was investigating UnitedHealth Group (UNH) was bad news for health insurers’ shares, while earnings news dragged some tech shares lower.
Some market watchers saw the move lower in markets as driven by economic data and policy uncertainty. Cruise stocks had been hit earlier this week after Commerce Secretary Howard Lutnick said they might be subjected to U.S. taxes.
Major Indexes in Negative Territory for Month
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The S&P 500 is just two days removed from an all-time high, while the Dow Jones Industrial Average and Nasdaq Composite each got to within 1% of record highs of their own.
But after two consecutive days of declines, the major indexes enter the final week of the month in negative territory for February.
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The Dow is down 2.5% so far this month, while the S&P 500 and Nasdaq are off 0.5%. The Dow and S&P 500 posted gains in January after losing ground the month before, while the Nasdaq was riding a three-month winning streak coming into February.
Block Plunges as Slower Consumer Spending Hurt Results
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Shares of Block (XYZ) sank 18% Friday, a day after the provider of online payment systems’ results and guidance missed estimates as consumer spending slowed.
The Square and Cash App parent reported fourth-quarter adjusted earnings per share (EPS) of $0.71, with revenue up 4.5% year-over-year to $6.03 billion. Analysts surveyed by Visible Alpha were looking for $0.90 and $6.32 billion, respectively.
CEO Jack Dorsey said the company spent 2024 “looking critically at our organization and making changes so we can build much faster.” Dorsey added that most of that work has been completed and that “positions us for a strong financial outlook in 2025, with momentum building throughout the year.”
The company sees full-year gross profit of $10.22 billion, while the Visible Alpha estimate was for $10.30 billion.
Jefferies, which has a “buy” rating on the stock, called 2025 a “now or never” year for Block, writing that while the size of the estimated acceleration of the business “is likely to be met with some skepticism, we take some comfort in mgmt. framing as having ‘clear visibility’ into the drivers.”
What Analysts Think of Nvidia Ahead of Earnings Next Week
9 hr 10 min ago
Nvidia (NVDA) is set to report fourth-quarter results after the market closes Wednesday, with analysts widely bullish on the AI chipmaker’s stock.
All but one of the 18 analysts covering the stock tracked by Visible Alpha have issued “buy” or equivalent ratings, with one analyst giving the stock a “hold” rating. The consensus price target is about $175. The stock, which has doubled over the past 12 months, was down more than 3% late Friday at around $135.
Bridget Bennett / Bloomberg / Getty Images
Nvidia is projected to post record quarterly revenue of $38.32 billion, up 73% year-over-year, according to estimates compiled by Visible Alpha. Net income is expected to climb to $21.08 billion, from $12.84 billion a year earlier.
Read the full story here.
Akamai Plunges to Lead S&P 500 Decliners on Weak Outlook
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Shares of Akamai Technologies (AKAM) fell more than 20% to lead S&P 500 decliners Friday, as disappointing forecasts outweighed better-than-expected fourth-quarter results.
After the bell Thursday, the cybersecurity and cloud computing company reported $1.02 billion in revenue, up 3% year-over-year and a tick above Visible Alpha estimates. Adjusted earnings per share (EPS) came in at $1.66, a 2% decline but still better than analysts had expected.
However, Akamai’s forward-looking projections overshadowed the Q4 results. The company said it expects current-quarter revenue between $1.00 billion and $1.02 billion and full-year revenue between $4.00 billion and $4.20 billion, both below consensus estimates.
Adjusted EPS is forecast between $1.54 and $1.59 for the first quarter and $6.00 to $6.40 for 2025, below expectations of $1.66 and $6.81, respectively.
Also on Thursday, Akamai announced that it has signed a multi-year contract worth more than $100 million with “one of the world’s largest technology companies” to “augment and improve” the unidentified client’s cloud infrastructure services.
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Akamai shares sank to their lowest level since May 2023.
Buffett’s Annual Letter, Berkshire Earnings Set for Saturday
10 hr 55 min ago
Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) is set to report its fourth-quarter earnings on Saturday.
Buffett’s annual shareholder letter, which investors look to for commentary on investments and the economy, will also be released this weekend.
Investopedia / Photo Illustration by Alice Morgan / Alison Czinkota / Getty Images
Investors will be looking for any clues about how Berkshire plans to deploy some of its record cash pile.
Buffett’s portfolio decisions will also be in focus after recent 13F filings revealed new positions and reduced stakes in bank stocks.
Read the full preview here.
Rivian Stock Falls as Deliveries Forecast Disappoints
11 hr 40 min ago
Rivian Automotive (RIVN) shares fell Friday, a day after the electric vehicle maker predicted 2025 deliveries below analysts’ estimates.
The maker of the electric pickups, SUVs, and commercial vans backed by Amazon (AMZN) said it sees full-year deliveries of 46,000 to 51,000. Analysts surveyed by Visible Alpha were looking for more than 55,000. The company noted that its outlook took into account “potential adjustments to incentives, regulations, and tariff structures” that may be implemented by the Trump administration, as well as “a challenging demand environment.”
Phillip Faraone / Getty Images
The news offset a better-than-expected fourth-quarter report. Rivian posted a net loss of $0.70 per share, $0.08 less than the estimate of analysts surveyed by Visible Alpha. Revenue jumped 32% to $1.73 billion, also ahead of forecasts.
The company produced 12,727 vehicles and delivered 14,183 in the period, and produced 49,476 and delivered 51,579 in 2024.
Earlier this week, electric truckmaker Nikola (NKLA) filed for Chapter 11 bankruptcy, with CEO Steve Girsky explaining that recent attempts to raise cash and keep operating weren’t enough to overcome “significant” macroeconomic challenges.
Shares of Rivian Automotive were down 5% in recent trading and have lost about 16% over the past 12 months.
Celsius Rises as Drinks Maker Buys Rival, Tops Estimates
12 hr 40 min ago
Celsius Holdings (CELH) shares skyrocketed Friday, a day after the energy-drink maker expanded its efforts to reach women by acquiring rival Alani Nu for a net purchase price of $1.65 billion.
The company also posted better-than-expected financial results.
Celsius said the deal consists of $1.80 billion in cash and stock plus $150 million in tax assets. It is purchasing Alani Nu from co-founders Katy and Haydn Schneider and Congo Brands co-founders Max Clemons and Trey Steiger. Congo Brands operates Alani Nu. Celsius noted that along with the initial agreement, the sellers stand to potentially make another $25 million earn-out based on 2025 performance.
Celsius CEO John Fieldly said that the company expects the move will help expand the availability of Alani Nu products and “help more people achieve their wellness goals with great-tasting, functional product options at more moments throughout their lives.”
The transaction is expected to close in the second quarter.
Along with the Alani Nu news, Celsius reported fourth-quarter revenue of $332.2 million, which topped Visible Alpha consensus. Adjusted earnings per share (EPS) of $0.14 was just short of estimates.
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Celsius shares were up 32% in recent trading. Even with today’s advance, the stock has lost nearly half its value in the last year.
Major Indexes on Pace for Weekly Declines
13 hr 51 min ago
With their early-session retreat, major U.S. stock indexes are on track to record losses for the holiday-shortened trading week.
The Dow Jones Industrial Average is down 1.6% so far this week, while the S&P 500 and Nasdaq Composite are off 0.7% and 1.2%, respectively.
If the Dow finishes today around current levels, it would be the worst weekly performance since the week of Jan. 10. For the S&P 500 and Nasdaq, this would be the third of the last four weeks the indexes have posted weekly losses.
Booking Holdings Stock Rises on Strong Results
14 hr 16 min ago
Shares of Booking Holdings (BKNG) rose in early trading after the company’s fourth-quarter results topped expectations.
After the bell Thursday, the parent company of its namesake travel booking site along with Priceline, Kayak, and OpenTable reported $5.47 billion in revenue for the final quarter of 2024, better than the $5.19 billion analysts had expected.
Booking’s adjusted earnings came in at $41.55 per share, well above the $36.70 analyst consensus compiled by Visible Alpha. The travel and dining company posted gross bookings of $37.2 billion, compared to the $34.5 billion analyst estimate. Bookings, revenue, and adjusted EPS all rose from the same time a year ago.
The company also said Thursday that its board last month approved $20 billion for a new stock buyback program, in addition to the $7.7 billion remaining in the previous program at the end of 2024. Booking is also lifting its quarterly dividend by 10% to $9.60 per share, up from $8.75 a year ago.
Booking said it expects revenue to grow 2% to 4% year-over-year in the first quarter while gross bookings increase by 5% to 7%. Each metric is expected to rise in the mid-single digit percent range for the full year, while adjusted EPS grows in the low double digit percent range.
Analysts for Jefferies and JPMorgan each lifted their price target for Booking stock following the report to $5,400 and $5,750, respectively. They each noted that Booking executives said travel demand remained strong in the quarter, and that the company expects to increase its social media advertising spend this year, mostly on Meta Platforms (META) products like Facebook and Instagram.
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Booking shares were up more than 4% recently at around $5,220. The stock has risen about 40% over the last 12 months, outpacing the performance of the S&P 500 during that stretch.
UnitedHealth Plunges on News of DOJ Probe
15 hr 42 min ago
UnitedHealth Group (UNH) shares tumbled in premarket trading Friday following a report that the U.S. Department of Justice is investigating the healthcare giant’s Medicare billing practices.
According to The Wall Street Journal, the DOJ is investigating whether UnitedHealth tends to over-diagnose conditions that can earn it extra payouts from the Medicare Advantage program. The newspaper had reported on allegations of the practice in December, with doctors telling the outlet they were trained to “document revenue-generating diagnoses, including some they felt were obscure or irrelevant.”
The DOJ and UnitedHealth did not immediately respond to Investopedia requests for comment.
UnitedHealth previously has criticized the Journal‘s reporting on Medicare Advantage. The company has said the reports “clearly demonstrate that the Journal does not understand the Medicare Advantage program,” calling the reporting a “one-sided, biased attack.”
The news was also weighing on other health insurer stocks Friday, with CVS Health (CVS), Cigna (CI), Humana (HUM) and Centene (CNC) all tumbling.
UnitedHealth shares were down 13% about half an hour hour before the opening bell, set to trade at their lowest level since last April.
Futures Point to Mixed Open for Major Indexes
16 hr 14 min ago
Futures tied to the Dow Jones Industrial Average were down 0.5%.
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S&P 500 futures were up 0.1%.
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Nasdaq 100 futures rose 0.4%.
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