Dow Jones Drops as UnitedHealth Misses Revenue; S&P 500 Steady Before Retail Sales

The Dow underperformed as UnitedHealth Group, a key component of the index, fell over 4% following its mixed earnings report. While the company delivered adjusted earnings of $6.81 per share, above the $6.72 forecast, revenue came in at $100.81 billion, missing estimates of $101.76 billion. A shortfall in premium revenue, which totaled $76.48 billion versus the expected $78.18 billion, contributed to the decline.

As one of the highest-weighted Dow stocks, UnitedHealth’s drop exerted significant pressure on the index, overshadowing gains from other components.

How Are Inflation and Treasury Yields Shaping Sentiment?

Wednesday’s rally was supported by a softer inflation reading, with December’s core consumer price index rising 3.2% annually, slightly below the expected 3.3%. Core inflation rose just 0.2% monthly, easing concerns about aggressive Federal Reserve policy. Treasury yields tumbled, with the 10-year yield falling to 4.667%, before inching higher Thursday as investors awaited fresh economic data.

What’s Next for Markets?

Traders are focused on December retail sales, expected to rise 0.5%, down from 0.7% in November, as well as weekly jobless claims data. These reports will offer key insights into consumer spending and labor market conditions, critical drivers of economic momentum.

The Federal Reserve’s next meeting, scheduled for late January, looms large over the markets. While inflation trends suggest rates will remain steady, investors are watching closely for signals of potential shifts in monetary policy.