UnitedHealth Leads Dow Lower Again
11 minutes ago
UnitedHealth Group (UNH) shares fell Wednesday after an investigation from The Guardian found that the insurer paid nursing homes to reduce hospital transfers.
The company allegedly paid under-the-table bonuses to nursing homes in order to reduce hospital transfers for residents, helping UnitedHealth lower costs,The Guardian reported.
In a statement Wednesday, UnitedHealth said the U.S. Department of Justice has “investigated these allegations, interviewed witnesses, and obtained thousands of documents that demonstrated the significant factual inaccuracies in the allegations. After reviewing all the evidence during its multi-year investigation, the Department of Justice declined to pursue the matter.”
Shares of the Dow component were down close to 5% in recent trading, after hitting a five-year low last week amid reports the Justice Department is investigating the health-care giant for possible Medicare fraud. Also last week, the company announced CEO Andrew Witty was stepping down after four years in the role and the company withdrew its full-year guidance.
Shares of UnitedHealth, which were trading near $600 in mid-April, have lost about half their value since then.
D-Wave Quantum Levels to Watch After Yesterday’s Surge
37 minutes ago
D-Wave Quantum (QBTS) shares were down slightly this morning after soaring Tuesday following the release of a quantum computing system the company says can solve problems beyond the capabilities of classical computers.
The company said its Advantage2 system increases energy scale by 40% and reduces noise by 75%, which results in higher-quality outputs for solving complex calculations. The company added that the technology marks a significant milestone not just for D-Wave, but for the quantum computing industry as a whole.
D-Wave shares, which jumped 26% yesterday, have doubled since the start of the year and gained more than 1,200% over the past 12 months. The stock has been boosted by a 500% surge in the company’s first quarter revenue and expectations that quantum computing will transform a wide range of industries.
D-Wave shares have staged a decisive breakout above the top trendline of an ascending triangle this week, signaling a continuation of the stock’s strong uptrend that preceded the pattern. It’s also worth pointing out that the 50-day moving average sits on the verge of crossing above the 200-day MA to form a golden cross – a bullish chart indicator predicting higher prices.
Moreover, above-average trading volume has accompanied the recent rally, indicating buying conviction by larger market participants, such as institutional investors and hedge funds. Meanwhile, the relative strength index confirms bullish price momentum, though the indicator also flashes overbought conditions, which could lead to short-term profit taking.
Chart-based upside targets using the measured move technique and bars pattern analysis sit at $40 and $90, respectively. Investors should monitor a major support level on D-Wave’s chart around $12.
The stock was down 1.3% at $16.35 in recent trading.
Read the full technical analysis piece here.
Target Shares Slide on Lowered Full-Year Sales Forecast
1 hr 8 min ago
Target (TGT) shares fell in premarket trading Wednesday after the retail giant lowered its full-year sales projection following mixed first-quarter results.
The Minneapolis-based retailer reported quarterly adjusted earnings per share (EPS) of $1.30 on revenue that decreased nearly 3% year-over-year to $23.85 billion. Analysts had expected $1.64 and $24.34 billion, respectively, per Visible Alpha. However, Target’s GAAP EPS of $2.27, which includes the gains from litigation settlements, topped the $1.64 estimate.
Comparable sales declined by 3.8%, as a larger drop in in-store shopping offset an increase in digital sales. Analysts had projected a 1.68% drop.
“While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth,” CEO Brian Cornell said, adding that the retailer is “not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth.”
The company cut its fiscal 2025 sales forecast and widened its projected profit range. The retailer now expects a low-single-digit sales decrease and EPS of $8.00 to $10.00, with adjusted EPS—excluding the Q1 gains from litigation settlements—projected from $7.00 to $9.00. Last quarter, Target said it expected roughly 1% net sales growth and EPS, both GAAP and adjusted, of $8.80 to $9.80.
Separately Wednesday, Target announced the creation of a “Enterprise Acceleration Office,” led by COO Michael Fiddelke. The retailer said the effort is designed to “improve how functions work together to advance key priorities, ranging from simplifying cross-company processes to using technology and data in new ways to power the team.”
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Target shares were down 6% in recent trading. The stock has lost about a third of its value since the start of the year.
Major Stock Index Futures Move Lower
2 hr 19 min ago
Futures tied to the Dow Jones Industrial Average were down 0.7%.
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S&P 500 futures were off 0.5%.
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Nasdaq 100 futures also fell 0.5%.
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