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Tuesday, January 27

Noteworthy macro moves today: USD/JPY -0.8%. Gold +1.3%. GBP/USD +0.5%. Noteworthy US mega-cap moves today: UnitedHealth Group Inc (UNH) -15.9%. Apple Inc (AAPL) +1.5%. 

Global equity indices are trading mixed as investors navigate geopolitical tensions and prepare for significant upcoming economic data releases, including the Federal Reserve's interest rate decision on Wednesday. Notably, U.S. stocks are reacting to President Trump's recent tariff threats against Canada and South Korea, which have raised concerns about trade stability.

In economic news, Canada’s wholesale sales rose by a preliminary estimate of 2.1% month-over-month in December, indicating a positive trend in trade activity that may influence market sentiment. Meanwhile, France's consumer confidence index remained stable at 90.0 for January, reflecting cautious optimism amid ongoing economic challenges.

Additionally, gold prices have surged over concerns regarding a potential U.S. government shutdown and geopolitical risks, with spot gold reaching new highs above $5,100 an ounce today. This increase in gold prices is contributing to shifts in investor sentiment as they reassess risk exposure ahead of key earnings reports from major tech companies later this week.

Health Care Select Sector SPDR Fund (XLV) [-1.4%]
The Trump Administration's recent proposal to maintain current Medicare payment rates for insurers may affect the profitability of health insurers, which is relevant for the Health Care Select Sector SPDR Fund (XLV). Additionally, the administration's suggestion for significantly lower-than-expected Medicare Advantage payment rates for 2027 has led to notable declines in shares of major health insurers included in the XLV ETF. This backdrop likely contributed to XLV's daily return of approximately -1.4%. Among the ETF's holdings, significant declines were observed in shares of UnitedHealth Group, CVS Health, Elevance Health, Humana, and Centene Corporation, all of which negatively impacted the fund's overall performance.

iShares Silver Trust (SLV) [+3.1%]
The iShares Silver Trust (SLV) has seen a price increase of 3.1% in pre-market trading, coinciding with notable developments in the silver market. Recent commentary highlighted a significant rally in silver prices, with a marked rise over the past month driven by diminishing supply and increased industrial demand. Silver peaked at $117.69 before a rapid pullback, currently trading at approximately $110.68 per ounce. Social media discussions reflected volatility, noting a dramatic price movement where silver fluctuated by 14% within hours, accompanied by unprecedented trading volume for SLV. Additionally, gold prices surged to record highs amid rising geopolitical uncertainties, further supporting demand for precious metals. The Bloomberg Dollar Spot Index reached its lowest level since March 2022, potentially making silver more accessible for international investors.

UNH | -15.0% | -41.3B
UnitedHealth Group Inc | Managed Health Care
UnitedHealth Group Inc is experiencing a significant decline, moving lower alongside the Managed Health Care sector. The company reported its fourth-quarter results, revealing an adjusted EPS of 2.11, which met consensus estimates, but revenue of 113.22 billion fell short of expectations. Concerns arose from the Centers for Medicare & Medicaid Services proposing a mere 0.09% increase in Medicare Advantage payments for 2027, far below the anticipated 4% to 6%. This proposal has negatively impacted sentiment toward health insurance stocks, including UnitedHealth, which was down over 9% in after-hours trading. Additionally, social media discussions highlighted a forecasted revenue decline for 2026, marking the first annual contraction since 1989. Following these developments, UnitedHealth shares were observed down more than 15% in pre-market trading.

CVS | -11.8% | -11.0B
CVS Health Corp | Health Care Services
Shares of CVS Health Corp dropped significantly following the Trump administration's proposal for Medicare Advantage rates, which fell well short of market expectations. The announcement, made 16 hours ago, indicated an average payment increase of only 0.09% for 2027, contrasting sharply with prior analyst projections of a 4% to 6% increase. This proposal also includes plans to eliminate certain billing practices that have benefited insurers. As a result, CVS shares, along with those of UnitedHealth Group and Humana, plunged in after-hours trading. Social media discussions reflect considerable negative sentiment surrounding the proposed changes, with CVS reportedly down over 10% in pre-market trading this morning. Users noted that the proposed rates are perceived as detrimental to Medicare Advantage-heavy insurers, potentially impacting revenue due to restrictions on payments related to chart-review diagnoses.

HUM | -15.4% | -4.1B
Humana Inc | Managed Health Care
Humana Inc. has seen a significant decline in its stock price, dropping sharply in response to the Trump administration's proposal for Medicare Advantage payment rates. The Centers for Medicare & Medicaid Services announced a proposed increase of only 0.09% for 2027, which is well below the expected range of 4% to 6%. This proposal has triggered substantial sell-offs in shares, with Humana among the hardest hit alongside UnitedHealth Group and CVS Health. Social media discussions have expressed alarm over these proposed changes, labeling them as a "brutal funding cut." Following the announcement, Humana's stock reportedly fell by 13% in after-hours trading and continued to decline over 10% in pre-market trading on Tuesday.

NET | +11.8% | +8.5B
Cloudflare Inc | Internet Services & Infrastructure
Cloudflare Inc (NET) shares surged significantly in pre-market trading, driven by excitement surrounding the launch of Clawdbot, an open-source AI agent designed for local devices. This development has increased demand for Cloudflare's secure, low-latency infrastructure, which is well-suited for supporting scaling AI agents. RBC Capital recently identified Cloudflare as a Tier 1 AI winner due to its inferencing opportunities. Analyst Joshua Tilton from Wolfe Research reiterated a Peer Perform rating on the stock, which was noted to have increased substantially this morning. Developer interest in using Cloudflare Tunnels for hosting Clawdbot has also contributed to the stock's performance, with discussions highlighting that some of the price movement was influenced by derivative trades.

GLW | +6.6% | +5.7B
Corning Inc | Electronic Components
Corning Inc. has announced a multiyear agreement with Meta Platforms Inc., valued at up to $6 billion, for the supply of optical fiber and connectivity solutions aimed at AI data centers. This deal, revealed today, emphasizes a commitment to domestic manufacturing and is intended to bolster U.S. data center infrastructure. Corning will enhance its manufacturing capabilities in North Carolina, projecting a workforce increase of 15 to 20 percent, with Meta serving as the anchor customer at Corning's Hickory facility. CEO Wendell Weeks underscored the partnership's significance in powering next-generation data centers to meet rising demand from major technology firms. The agreement extends through 2030 and has been widely discussed on social media platforms following its announcement.

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