The Department of Justice has initiated an antitrust review of UnitedHealth Group (UNH, Financial), causing the company's shares to fall by 2.4%. The investigation is focused on the relationship between UnitedHealth's insurance arm and its Optum health-services division. The DOJ's inquiry includes the potential effects of the company's acquisitions of doctor groups on competition and consumers. Amid this news, Amedisys (AMED), which UnitedHealth agreed to acquire last year, also saw a slight decrease in its stock price by 0.6%.
Senator Elizabeth Warren has voiced her opinion that it is time to dismantle large corporations, referencing the historical breakup of IBM. She has specifically targeted Amazon (AMZN, Financial), suggesting that the company should be prevented from dominating new sectors such as large language models. Additionally, Warren has called for scrutiny of Walmart's (WMT, Financial) proposed acquisition of Vizio Holding (VZIO), expressing concerns over the extension of Walmart's market dominance.
The information technology sector of the S&P 500 experienced a minor drop in short interest from mid-January to the end of the month. The average short interest in IT stocks was 1.30% of the float by the end of January, a slight decrease from 1.35% earlier in the month. Enphase Energy (ENPH, Financial) was the most shorted IT stock, while Apple (AAPL, Financial) had the least short interest.
Healthcare stocks also saw a reduction in short interest during the same period, with the average short interest for the S&P 500 Health Care Index Sector (XLV) falling to 1.44% of shares float. Waters (WAT) was the most shorted healthcare company, followed by Moderna (MRNA) and Catalent (CTLT). Conversely, Cooper (COO) and Johnson & Johnson (JNJ) were among the least shorted in the sector.
Safe Bulkers (SB, Financial) experienced a 3% increase in its stock value following an upgrade by Jefferies, while Flex LNG (FLNG) and Capital Product Partners (CPLP) saw declines after downgrades. Jefferies highlighted Safe Bulkers' share buyback program and fleet renewal as positive factors.
Apple (AAPL, Financial) has reportedly halted its electric vehicle project, reallocating some team members to work on generative artificial intelligence. This announcement led to a positive movement in Apple's shares, as well as an uptick in the stocks of other automakers like Tesla (TSLA, Financial), GM (GM), and Ford (F).
The S&P 500's Utilities sector (XLU) showed a slight increase, with NRG Energy (NRG) being the most shorted stock in the sector. The industry analysis indicated that Independent Power & Renewable Electricity Producers had the highest average short interest.
Snowflake (SNOW, Financial) is anticipated to report earnings that exceed expectations, driven by the growing demand for cloud data analytics and AI adoption. Analysts are optimistic about the company's positioning to benefit from these trends.
American Airlines Group (AAL) is reportedly close to placing an order for around 100 single-aisle planes, with Airbus (EADSY) (EADSF) expected to secure a larger portion of the order compared to Boeing (BA).
Beam Therapeutics (BEAM) saw its shares reach a 52-week high after reporting a profitable fourth quarter, with significant revenue growth stemming from a collaboration with Eli Lilly (LLY).
MannKind (MNKD) reported a positive earnings surprise with a Non-GAAP EPS of $0.02, beating estimates and showing a substantial year-over-year revenue increase.
Warner Bros. Discovery (WBD) has reportedly ended merger discussions with Paramount Global (PARA) (PARAA), while Comcast (CMCSA) has also shown disinterest in acquiring Paramount assets, though it may consider a commercial partnership.
