Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

If you find the insights useful, please send to a friend or share on Twitter.

Thursday, January 18, 2024

The overall market is currently experiencing normal macro volatility.

Some of the largest moves in the market today include: Nasdaq 100 Index (US) has experienced a large move of +0.8%. The number of Americans filing for unemployment benefits dropped to a 16-month low, falling by 16,000 to 187,000 and continuing claims decreased as well—indicating the US labor market remains historically tight. This could give the Federal Reserve room to maintain its hawkish stance on inflation into 2024.

Meanwhile, central banks globally are shaping markets; with ECB emphasizing data-dependency in policy decisions and China potentially altering monetary policy mechanisms.

JPMorgan Chase CEO Jamie Dimon warned at Davos about significant economic challenges ahead due partly to geopolitical tensions like Ukraine’s conflict affecting U.S economy forecasts through 2025.

In corporate news impacting stock sentiment: Discover Financial Services’ shares plunged following their earnings report while tech stocks such as AMD showed resilience with positive outlooks despite Plug Power announcing a substantial equity offering.

AI-generated summaries of notable premarket ETF moves:

VANECK SEMICONDUCTOR ETF | SMH $179.15 +2.6%
The VanEck Semiconductor ETF has moved 2.6% since the previous close, potentially influenced by positive movements in correlated stocks such as TSM (+7.87%), NVDA (+2.20%), and AMD (+2.97%). The ETF also shows a positive correlation with the Nasdaq 100 Index (0.46), suggesting that broader technology sector movements may be impacting its performance to some extent.

HEALTH CARE SELECT SECTOR SPDR FUND | XLV $138.41 -0.7%
Health Care Select Sector SPDR Fund (XLV) has moved -0.7% since the previous close, possibly influenced by declines in CVS (-5.61%), HUM (-14.05%), and UNH (-3.79%) stocks which contributed negatively to XLV’s performance.

Humana Inc | HUM $387.50 -13.8%
Health Care, Managed Health Care
Humana Inc’s stock price dropped by -13.6% after the company lowered its earnings-per-share outlook for fiscal 2023 due to higher-than-anticipated medical costs in Medicare Advantage utilization. The adjusted forecast reflects tempered growth and slightly higher attrition within its Dual Special Needs Plan offerings, impacting both Q4 results and full-year ratios for Adjusted Insurance segment benefits. This announcement resulted in Humana underperforming sector peers and contributing to overall weakness in the sector since the previous close.

CVS Health Corp | CVS $72.97 -5.2%
Health Care, Health Care Services
CVS Health Corp’s stock has moved down significantly (-5.2%) due to weak financial guidance from Humana Inc, which reported higher-than-expected medical costs for Q4 2023 and lowered its FY23 EPS outlook. This news has negatively impacted not only Humana but also other healthcare companies like UnitedHealth Group and CVS Health Corp, leading to concerns over higher expenses in the industry overall.

UnitedHealth Group Inc | UNH $503.50 -4.2%
Health Care, Managed Health Care
UnitedHealth Group Inc’s stock has declined significantly, down 4.2%, following Humana Inc’s weak financial guidance and reduced growth forecast for individual Medicare Advantage memberships. Concerns about rising healthcare costs in the sector overall have negatively impacted UnitedHealth Group’s performance as well.

Discover Financial Services | DFS $101.33 -6.2%
Financials, Consumer Finance
Discover Financial Services’s stock has moved -7.3% since the previous close due to its fourth-quarter earnings report falling below expectations, with lower than expected EPS of $1.54 and higher revenues of $4.2B beating estimates but representing a decrease compared to last year’s figures. Concerns about deteriorating credit quality among borrowers and increased provisions for bad loans as interest rates rise also contributed to the decline in share price.

Advanced Micro Devices Inc | AMD $166.00 +3.7%
Information Technology, Semiconductors
AMD stock moved +3.4% due to positive news in the chip sector, including strong results and guidance from TSMC which caused a ripple effect on chip stocks like AMD (+3.1%). Positive sentiment on Twitter also mentioned potential price target increase by TD Cowen.

 

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: 

Sign up for our Insights & Updates list to receive MarketReader news to your inbox, or sign up for a Free 7-Day Trial now.