The stock market closed mixed on Tuesday following some sharp swings recently. Investors gained confidence after a positive jobs report last week as such may give Fed a reason to cut interest rates.
Overall, S&P 500 rose 0.1% to 5,188, while NASDAQ fell 0.1% to 16,333.
Tweet of the Day
$GOOGL and $MSFT are currently growing capex fastest, +91% and +66% year on year. Looking at the trends, $AMZN AWS likely to follow with stepping capex as well. $META is currently lagging but Zuck announced to be stepping up AI capex during the year. pic.twitter.com/YuxCXIdNuy
— Tech Fund (@techfund1) April 26, 2024
Chart of the Day
Here is the ten-year chart of UnitedHealth (UNH) as of April 22, 2024, when the stock was at $491.
UnitedHealth stock rose after earnings as medical costs were fine. The medical cost ratio was 84.3%, up from 82.2% a year ago, due to increased costs driven by Medicare Advantage funding reductions. These higher costs were anticipated, but investors felt that the company effectively managed these costs well, with a notable decline in operating expenses. Last quarter, revenue rose 9% year-over-year as Medical Costs increased 10%, while Operating Costs increased just 3%. Medicare Advantage offers significant savings, with seniors saving approximately 45% on healthcare costs compared to traditional Medicare, translating to around $2,400 annually and even more for those with greater healthcare needs. Over half of seniors now choose Medicare Advantage, up from 30% a decade ago, and UnitedHealth expects this trend to keep growing in the future.
UNH is part of the Conservative Growth Portfolio.
