Weekly Market Recap:

This week, U.S. equities had a mixed performance. The S&P 500 (+0.96%) and Nasdaq (+3.34%) reached fresh record closes, while the Dow (-0.60%) and Russell 2000 (-1.06%) declined. Big Tech drove gains, with notable outperformance from semis, software, EVs, and athletic apparel. Under performers included industrial metals, homebuilders, and financials. Treasuries were slightly firmer, with a steepening curve. The dollar index gained +0.3%. Bitcoin surged +3.9% to a record high above $100K, while gold (-0.8%) and WTI crude (-1.2%) declined.

Corporate Highlights:

• Salesforce (CRM +9.7%): Reported strong earnings and enterprise software spending trends.

• Marvell (MRVL +22.5%): Beat expectations with AI-driven demand growth.

• Lululemon (LULU +24.6%): Highlighted robust consumer demand in Q3.

• Intel (INTC -13%): CEO Gelsinger announced retirement.

• American Airlines (AAL +19.8%): Positive updates on Q4 trends boosted airline stocks.

Sector Performance:

Top performers were Consumer Discretionary (+5.85%), Communication Services (+4.11%), and Tech (+3.35%). Energy (-4.55%) and Utilities (-3.84%) lagged. While the market showed strength in Big Tech and consumer resilience, concerns persist over promotional pressures in retail, hawkish Fedspeak, and geopolitical uncertainty. All eyes now turn to the December FOMC meeting and upcoming inflation data.

The tragic murder of Brian Thompson, CEO of UnitedHealth Group’s insurance division, has sent shockwaves through the healthcare industry and financial markets. Thompson, who led over 100,000 employees, was fatally shot outside his Manhattan hotel during an investor conference. Police suspect a targeted attack, citing shell casings with messages referencing insurance practices, such as "deny" and "defend. " UnitedHealth (UNH) stock plummeted 9.9% this week, marking its worst performance since March 2020. Other managed-care stocks also faced steep losses, with CVS Health down 7.6%, Cigna falling 5.9%, and Humana declining 4.9%. This comes amidst existing challenges for UnitedHealth, including fallout from a cyberattack and legal challenges over acquisitions. UNH’s 2024 earnings forecast of $27.50 to $27.75 per share and a 2025 revenue projection of up to $455 billion failed to stabilize investor sentiment. Analysts, however, remain optimistic, with Stephens raising UNH’s price target to $675. Adding to the turmoil, Anthem Blue Cross Blue Shield reversed a controversial anesthesia reimbursement policy after public backlash. Critics, including Sen. Chris Murphy, condemned it as a profit-driven move detrimental to patients, fueling further scrutiny of managed care practices. Despite these challenges, UnitedHealth remains a giant in the industry. However, recent events highlight mounting risks in the healthcare sector.

From regulatory hurdles to public criticism, managed-care companies face increasing pressure to balance profitability with public trust, even as they pursue ambitious revenue targets.

NEXT WEEK: Notable Earnings

Monday (12/9)

• Oracle Corp. ($ORCL)

• Amtech Systems Inc. ($ASYS)

Tuesday (12/10)

• AutoZone Inc. ($AZO)

• GameStop Corp. Cl A ($GME)

• Dave & Buster's Entertainment ($PLAY)

Wednesday (12/11)

• Adobe Inc. ($ADBE)

• Oxford Industries Inc. ($OXM)

Thursday (12/12)

• Ciena Corp. ($CIEN)

• Broadcom Inc. ($AVGO)

• Costco Wholesale Corp. ($COST)

Notable Ex-Dividend Dates:

Monday (12/9)

• Alphabet ($GOOG) 0.45%

• FedEx ($FDX) 1.88%

• UnitedHealth Group ($UNH) 1.48%

Tuesday (12/10)

• Harley-Davidson ($HOG) 2.05%

• Texas Roadhouse ($TXRH) 1.23%

Wednesday (12/11)

• HP ($HPQ) 3.20%

• Kohl’s ($KSS) 11.06%

Thursday (12/12)

• ADT ($ADT) 2.70%

• Air Lease ($AL) 1.80%

• Jack in the Box ($JACK) 3.70%

Friday (12/13)

• Citizens Financial Services ($CZFS) 2.80%

• DICK’S Sporting Goods ($DKS) 2.10%

• Walmart ($WMT) 0.50%*

*Dividend Aristocrat