Weekly Market Recap:
U.S. equities declined this week, with the Dow (-2.51%), S&P 500 (-1.66%), Nasdaq (-2.51%), and Russell 2000 (-3.71%) all retreating after midweek record highs. The Nasdaq underperformed as Meta (-7.2%), Amazon (-5.3%), and Tesla (-5.1%) weighed on the index. Other laggards included cruise lines, airlines, homebuilders, and investment banks. Strength was seen in China tech, pharma, energy, and telecom. Treasuries were firmer, gold surged (+2.1%) to a record high, WTI crude dipped (-0.2%), and Bitcoin futures fell (-2.8%).
Corporate Highlights:
Walmart (WMT -8.9%): Beat on revenue and EPS, but issued cautious FY26 guidance.
Alibaba (BABA +15.3%): AI-related growth drove strong earnings and outlook.
Booking Holdings (BKNG +1.1%): Beat expectations, citing favorable travel demand.
Toll Brothers (TOL -9.8%): Missed earnings and issued weak guidance.
Intel (INTC +5.3%): Potential split into two companies under discussion.
Nike (NKE +4.47%): Announced launch of new NikeSKIMS brand.
Sector Performance:
Outperformers: Utilities (+1.39%), Healthcare (+1.07%), Energy (+1.06%). Underperformers: Consumer Discretionary (-4.30%), Communication Services (-3.68%), Industrials (-2.06%).
Markets reacted to Trump’s tariff proposals, weak housing data, and mixed earnings. Investors now look ahead to key economic reports, including Consumer Confidence, new home sales, and January’s Core PCE inflation data.
The U.S. Department of Justice has launched a civil fraud investigation into UnitedHealthcare, the country’s largest health insurer, over allegations of improper Medicare billing. The probe centers on whether the company artificially inflated patient diagnoses to increase the monthly payments it receives from Medicare Advantage, a program that allows private insurers to manage care for millions of Americans. UnitedHealthcare, a $457 billion corporation and the largest employer of doctors in the U.S., plays a massive role in the healthcare system. Critics argue that the Medicare Advantage program, originally intended to reduce costs through private sector efficiency, has instead led to billions in excess taxpayer spending. A 2024 study estimated that Medicare Advantage cost taxpayers $83 billion more than traditional Medicare. Beyond financial concerns, Medicare Advantage has drawn scrutiny for restricting patient access to care. Many beneficiaries report frustration with prior authorization requirements, which force them to get insurer approval before receiving treatment. In response to the investigation, UnitedHealthcare dismissed the allegations, claiming the Wall Street Journal’s reporting was misleading and defending its compliance record. However, the company’s reputation has been under strain following a major data breach affecting 85 million patients and the shocking murder of its CEO, Brian Thompson. As scrutiny intensifies, this investigation could have major implications for both UnitedHealthcare and the broader Medicare Advantage system, raising questions about oversight and accountability in private healthcare management.
What to watch:
Notable Earnings:
Monday (2/24)
Realty Income Corporation ($O)
Zoom Communications, Inc. ($ZM)
Domino's Pizza Inc ($DPZ)
Tuesday (2/25)
Home Depot, Inc. ($HD)
Keurig Dr Pepper Inc. ($KDP)
Wednesday (2/26)
NVIDIA Corporation ($NVDA)
Salesforce, Inc. ($CRM)
Lowe's Companies, Inc. ($LOW)
Thursday (2/27)
Dell Technologies Inc. ($DELL)
Autodesk, Inc. ($ADSK)
Friday (2/28)
Berkshire Hathaway Inc. ($BRK.A)
Notable Ex-Dividend Dates:
Monday (2/24)
Phillips 66 ($PSX) 3.68%
Warner Music Group ($WMG) 1.98%
Tuesday (2/25)
CDW ($CDW) 1.25%*
Moody’s ($MCO) 0.70%
Wednesday (2/26)
Amcor ($AMCR) 5.00%
Electronic Arts ($EA) 0.60%
Tractor Supply ($TSCO) 6.54%
Thursday (2/27)
Delta Air Lines ($DAL) 0.88%
Marriott International ($MAR) 0.87%
Friday (2/28
Cboe Global Markets ($CBOE) 1.21%
FactSet Research Systems ($FDS) 0.89%*
*Dividend Aristocrat
