Stocks experienced a turbulent day on April 17, 2025, as investors reacted to a mix of corporate earnings reports and broader economic concerns. The major indexes faced significant pressure, particularly from UnitedHealth Group, which saw its shares plummet following disappointing earnings and a drastic cut to its profit forecast.
UnitedHealth (UNH) shares fell more than 23% in recent trading, marking a sharp decline after the healthcare giant reported adjusted earnings per share (EPS) of $7.20 on revenue of $109.58 billion. This was below analysts' expectations, which had predicted EPS of $7.25 and revenue of $111.46 billion, according to Visible Alpha. The company also slashed its full-year EPS outlook, now projecting a range of $26 to $26.50, down from a previous estimate of $29.50 to $30.00.
CEO Andrew Witty explained the outlook cuts were due to "heightened care activity indications" in its Medicare Advantage business and "unanticipated changes in the profile of Optum Health members impacting planned 2025 reimbursement." The news had a ripple effect, dragging down shares of other health insurers, including Humana (HUM), which fell 7%, and CVS Health (CVS) and Centene (CNC), each down about 2%.
Meanwhile, Eli Lilly (LLY) emerged as a bright spot in the market, with shares soaring 14% after the company announced positive results from a Phase 3 trial of its oral weight-loss drug, orforglipron. The trial demonstrated statistically significant efficacy and a safety profile consistent with injectable GLP-1 medicines. The successful trial results have positioned Eli Lilly as a strong competitor in the weight-loss treatment market, particularly against rivals like Novo Nordisk (NVO), whose shares sank more than 6% following the announcement.
In the broader market, the S&P 500 managed to gain 0.4%, while the Nasdaq Composite slipped 0.1%. The Dow Jones Industrial Average faced the most significant decline, dropping 1.1%, or more than 400 points, primarily due to UnitedHealth's steep fall. The mixed results reflected ongoing investor concerns about inflation and economic growth, exacerbated by comments from Federal Reserve Chair Jerome Powell regarding the impact of tariffs on the economy.
Adding to the market's volatility, Hertz (HTZ) shares surged nearly 16% on April 17, extending gains from the previous session when the stock skyrocketed more than 56% after Bill Ackman's Pershing Square Capital Management disclosed a nearly 20% stake in the rental car company. The investment firm revealed that it had purchased 12.7 million shares valued at approximately $46.5 million, generating excitement among investors.
On the other hand, Alcoa (AA) shares dropped more than 2% after reporting first-quarter earnings that missed expectations. The aluminum producer's revenue of $3.37 billion fell short of the anticipated $3.53 billion, although its adjusted profit topped estimates. Alcoa also incurred $20 million in costs related to tariffs on Canadian imports.
In the tech sector, stocks were mixed as well. Nvidia (NVDA) shares lost ground, down 1.3% in recent trading after experiencing a nearly 7% drop the previous day. The company announced it would take a $5.5 billion charge due to U.S. restrictions on exports of its AI chips to China, contributing to the uncertainty surrounding its stock performance.
Despite the challenges, some tech stocks managed to perform well. Taiwan Semiconductor's U.S. shares rose more than 3% after the chipmaker's first-quarter results exceeded Wall Street's forecasts, and it maintained its revenue outlook for 2025.
As the day progressed, other notable movers included D.R. Horton (DHI), which saw its shares fall more than 3% after reporting weaker-than-expected second-quarter results. The homebuilder earned $2.58 per share, slightly below the expected $2.63, and its revenue of $7.73 billion also missed the consensus estimate of $8.03 billion.
Oil and gas stocks showed some resilience, with Diamondback Energy (FANG) and Baker Hughes (BKR) rising 5% and 2%, respectively, as oil prices continued to climb. West Texas Intermediate futures were up 2.8% at $64.20 per barrel, reflecting a broader trend in energy markets.
Gold prices, however, experienced a slight decline, down 1% at $3,310 an ounce after hitting a record high of around $3,370 earlier in the day. Investors have been seeking safe havens amid ongoing economic uncertainty, contributing to the fluctuations in precious metal prices.
In the cryptocurrency market, Bitcoin was trading at $84,500, recovering from an earlier low of about $83,700.
As trading continues, the mixed performance across sectors highlights the complexities of the current economic landscape, driven by corporate earnings, inflation concerns, and geopolitical factors. Investors remain cautious as they navigate a market characterized by volatility and uncertainty.
