The stock market slid on Thursday after disappointing guidance from Walmart, the world’s largest retailer. Retailers tend to perform well during tough economic times. Consumers are dealing with high prices and high borrowing costs, with credit card and loans supporting their spending. However, bad loans are going up.
Overall, S&P 500 fell 0.4% to 6,117, while NASDAQ declined 0.5% to 19,962.
Tweet of the Day
Sea $SE stock is on fire. We are researching it now. https://t.co/KkeRm8zUHQ
— David Sharek (@GrowthStockGuy) February 18, 2025
Chart of the Day
Here is the one-year chart of UnitedHealth (UNH) as of January 20, 2025, when the stock was at $510.
UNH’s CEO was recently assasinated in New York City by an individual that had his claim denied by UnitedHealth health insurance. This sparked other UnitedHealth customers to speak out about their claims not being paid. Also, some investors feel profits are abnormally high because the company is denying claims that should be paid out.
In 2024, UNH’s Medical Cost Ratio (MCR) was 85.5% in 2024, an increase from 83.2% in 2023 driven by CMS Medicare funding cuts, medical reserve developments, and changes in business and member mix. In 2025, the ratio is expected to stay elevated at 86% to 87% due to the CMS Medicare rate cut and Medicare Advantage customer profiles that were not expected, and delays in updating Medicaid state rates. Meanwhile, 2024 operating cost ratio improved to 13.2% compared to 14.7% in 2023 driven by operating efficiencies.
UNH is part of our Conservative Growth Portfolio.
