Stock Market Update

[BRIEFING.COM] The major averages have seen a modest dip from session highs, currently in close proximity to their unchanged levels.

UnitedHealth (UNH 345.45, +21.97, +6.79%) is one of the best-performing S&P 500 component after reporting its Q1 results this morning. The managed care and health services giant delivered a sizable EPS beat, its largest in the last five years, while revenue increased 2% year-over-year to $111.72 billion, also nicely above expectations.

Additionally, the company raised its FY26 EPS guidance above expectations to greater than $18.25 from $17.75, suggesting its efforts to manage elevated medical costs through disciplined pricing, portfolio repositioning, and tighter operating execution are helping drive stronger profitability. Overall, the stock is rallying because the quarter marked meaningful progress, but it will be important for UNH to continue stabilizing performance and make progress against still-elevated medical cost and utilization trends.

Despite the rally in UnitedHealth, the health care sector (-0.2%) trades lower this morning, with particular weakness across pharmaceutical names such as Merck (MRK 112.21, -4.89, -4.18%) and Eli Lilly (LLY 883.91, -35.99, -3.91%).