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Key Takeaways
- The S&P 500 ticked 0.1% higher on Thursday, April 17, wrapping up a shortened week that focused on earnings and the Fed chair's comments on likely tariff impacts.
- Eli Lilly shares rose after the drugmaker reported positive results of a clinical study of its oral weight loss treatment.
- UnitedHealth Group missed its quarterly estimates and lowered their guidance, citing increased medical costs. Shares of the insurer plunged.
The major U.S. equity indexes were mixed at the end of a short trading week. Markets will be closed on Good Friday.
The S&P 500 ended Thursday’s session with a minor gain of 0.1%. The Dow fell 1.3%, due to a steep drop in UnitedHealth Group (UNH), a health insurance component. After fluctuating throughout the day the Nasdaq ended the day 0.1% lower.
Eli Lilly (LLY) shares notched the S&P 500’s top daily performance, surging 14.4% after the pharmaceutical giant released promising results from a clinical trial of its experimental oral weight-loss treatment. Lilly says that the first in a number of Phase 3 studies revealed that orforglipron is more effective than placebo at causing a weight loss, and reducing A1C – a long term gauge of blood glucose levels. The company expects that it will seek FDA approval for orforglipron in the next year to treat type 2 diabetics.
Dollar Tree (DLTR), shares rose 8.1% on Thursday. Analysts said that the stock had been trending higher since April and that the discount retailer was poised for growth despite the challenging macroeconomic climate. Citi upgraded Dollar Tree last week, indicating that the company may be an unlikely beneficiary of tariffs. It has a history of success in previous downturns and is flexible enough to raise its prices without deterring customers.
Crude Oil Futures Prices rose for a second consecutive day after the U.S. announced more sanctions against Iran’s petroleum business. The increase in oil prices has helped lift oil and gas stocks. Diamondback Energy (FANG), a firm that specializes in exploration and production, saw its shares rise 5.7%. Halliburton, a provider of oilfield service, saw its shares increase 5.1%.
UnitedHealth shares fell 22.4% following the insurer’s announcement of lower-than expected sales and profits in the first quarter. It was the heaviest decline in the Dow and the S&P 500. The company also lowered its profit forecast for the full year. Humana (HUM), another health insurance stock, fell 7.4%.
Snap-On shares fell 8.0% after the maker hand tools and professional equipment missed quarterly profit and sales estimates. The company stated that the macroeconomic climate weighed on their performance, and the uncertain outlook made customers more reluctant to buy financed goods.
Global Payments (GPN) agreed to acquire rival payment processing firm Worldpay from current stakeholders Fidelity National Information Services (FIS) and private equity firm GTCR. Global Payments emphasized the size and global reach that will be achieved by its combination with Worldpay. However, the shares of the fintech company plunged 17.4% Thursday. FIS shares did much better with an 8.7% jump.
