The stock market accelerated on Tuesday after July’s Producer Price Index came in better than expected. U.S. producer prices rose only 0.1% from last month after rising 0.2% in June. Year-over-year, it went up to 2.2%, slightly higher than the 2.0% target of the Federal Reserve.
Overall, S&P 500 went up 1.7% to 5,434, while NASDAQ jumped 2.4% to 17,188.
Tweet of the Day
Furniture retailers are VERY weak. But homebuilders are hot. Somethings gotta give. This could be a buying opportunity for $RH. https://t.co/CoCXORZMS9
— David Sharek (@GrowthStockGuy) August 2, 2024
Chart of the Day
Here is the one-year chart of UnitedHealth (UNH) as of July 24, 2024, when the stock was at $560.
UnitedHealth posted as-expected uninspiring results last quarter that investors liked. The stock had been weak prior to these results as the UnitedHealth was expected to have costs rise due to Medicare leaving rates unchanged for 2024. Last quarter, the medical cost ratio was up 85.1% from 83.2% last year due to the impacts of supporting care providers and adjustments after selling its larger Brazilian operations. However, the company managed costs effectively, as its operating costs were reduced to 13.3% from 14.9% a year ago.
UNH is typically a mid-teens profit grower. Profit growth was just 9% last quarter and is expected to be 7% next quarter. But when we look two quarters out, analysts expect profit growth to accelerate to 13% year-over-year.
UNH is part of the Conservative Growth Portfolio.
