Stocks Zigzag on Wall Street Over Mixed Profit Reports From GM, UnitedHealthcare

Stocks zigzagged on Wall Street at one point in the week following a rush of mixed profit reports from UnitedHealthcare, General Motors, and other big companies, and the crosscurrents kept overall indexes in check, Stan Choe reported for the Associated Press (AP).

The S&P 500 rose 0.2%, the Dow Jones Industrial Average fell 365 points, or 0.7%, while the Nasdaq composite climbed 0.5%.

The S&P 500 rose 0.2% and moved closer to its all-time high set a couple of weeks ago. The Dow Jones Industrial Average fell 365 points, or 0.7%, as of 9:35 a.m. Eastern time, while the Nasdaq composite climbed 0.5%.

UnitedHealth Group tumbled nearly 19% even though it reported quarterly profit that came in slightly better than analysts expected.

More attention was focused on the company’s revenue forecast for the coming year, which fell short of Wall Street expectations.

UnitedHealth and other health care companies also faced pressure after the US government projected a rate increase for Medicare Advantage that disappointed investors.

UnitedHealth is the nation’s largest provider of Medicare Advantage plans, which are privately run versions of the federal government’s coverage program.

Insurers have struggled to maintain Medicare Advantage profit margins due to funding cuts and rising care usage and costs. Humana fell 18.7%, Elevance Health dropped 10.8%, and CVS Health sank 8.9%.