UnitedHealth Group Inc. (UNH)’s Results Sicken the Dow Jones Industrial Average (.DJI)

UnitedHealth Group Inc. (NYSE:UNH)Stock markets are down once again today, driven lower by weak economic data and less-than-inspiring earnings. The Conference Board said its Leading Economic Index fell 0.1% in March, whereas economists had expected 0.2% growth. The index is a weighted gauge of 10 indicators designed to give an indication of business cycles, so it’s a broader reading than most — and that’s why investors are concerned by the reading. This is one of the bits of bad news driving the Dow Jones Industrial Average (Dow Jones Indices:.DJI) and the S&P 500 (SNPINDEX:GSPC) down 0.57% and 0.72%, respectively, near the end of trading.

UnitedHealth Group Inc. (NYSE:UNH) is the biggest decliner on the Dow Jones Industrial Average (Dow Jones Indices:.DJI), falling 3.4% after reporting earnings. Revenue rose 11% in the first quarter to $30.34 billion, but net income fell 14% to $1.19 billion, or $1.16 per share. Those numbers weren’t wildly out of line with expectations, but when management said full-year revenue would be $122 billion, well below a previous estimate of $123 billion to $124 billion, the sell-off was on.

When President Obama was re-elected, shares of UnitedHealth Group Inc. (NYSE:UNH) and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth Group Inc. (NYSE:UNH), The Motley Fool takes a long-term view, honing in on prospects for UnitedHealth in a post-Obamacare world. So don’t miss out — simply click here now to claim your copy today.

Bank of America Corp (NYSE:BAC) is the only stock that came close to matching UnitedHealth Group Inc. (NYSE:UNH), falling 3% on continued earnings worry. The megabank was the biggest loser yesterday, and after a night to digest the company’s first-quarter earnings report, investors aren’t feeling any better about it. To make matters worse, Morgan Stanley (NYSE:MS) reported earnings this morning, and after you strip out accounting charges, its profit fell from $0.71 a year ago to $0.61 in the first quarter. Banking stocks have been on a tear in 2013, and that bullishness seems to be reversing quickly now that earnings are out.

On the positive side of the market, shares of Verizon Communications Inc. (NYSE:VZ) are up 3.1% today after the company announced first-quarter revenue of $29.4 billion and net income of $1.95 billion, or $0.68 per share. Revenue was a touch lower than expected, but EPS beat expectations by $0.02, and shares were off to the races. Not surprisingly, results were driven by Verizon Communications Inc. (NYSE:VZ) Wireless, which added 677,000 new devices to its rolls this quarter. The momentum continues for Verizon Communications Inc. (NYSE:VZ) Wireless, and this is the only cell carrier I’d bet on today.

The article UnitedHealth’s Results Sicken the Dow originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool owns shares of Bank of America.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!