Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (-0.2%) remain modestly lower amid mixed strength in the broader market and a sluggish early showing from mega-cap stocks.

Abbott Labs (ABT 97.22, -4.34, -4.27%) is one of the worst-performing S&P 500 components today after reporting solid Q1 results highlighted by strong revenue growth, though another round of lowered EPS guidance for Q2 and FY26 overshadowed the quarter and validated investor concerns following last quarter's guide-down. Abbott projects FY26 comparable sales growth of 6.5% to 7.5%. Of note, the EPS guidance includes $0.20 of dilution related to the recent acquisition of Exact Sciences, a cancer diagnostics company.

Abbott delivered a good quarter operationally, particularly with strong performance in Medical Devices and a healthy top-line beat, but the investment narrative remains clouded by ongoing earnings pressure. The repeated guidance cuts are difficult to overlook, even with the explanation of acquisition-related dilution and temporary headwinds like a weak respiratory season.

Other medical devices and diagnostics companies, such as Intuitive Surgical (ISRG 460.82, -7.54, -1.61%) and Danaher (DHR 194.73, -3.41, -1.72%), also trade lower, and the health care sector (-0.4%) is missing out on some rotational buying that pushes the consumer staples (+0.5%) and utilities (+0.4%) sectors higher.