Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



How UnitedHealth Cured the Dow on Tesla's Big Day

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Stock market investors have seen a number of days recently that look a lot like what happened today. After jumping to a modest early gain, the Dow Jones Industrials (DJINDICES: ^DJI  ) gave up ground and by midday was trading down by more than 45 points. But in the final half-hour of trading, the stock market climbed back and finished down just six points, as investors apparently chose to focus on more optimistic sentiment like their views for the coming earnings season. Broader markets stayed mired in bigger losses, as the Nasdaq fell almost 1% and the S&P 500 gave up half a percent.

UnitedHealth (NYSE: UNH  ) was a big contributor to the late recovery, soaring more than 3% and adding further gains after hours immediately following the close. Along with Humana, UnitedHealth got hit hard last month on news that reimbursement rates for Medicare Advantage plans might fall, because the two companies rely heavily on such reimbursements as part of their overall business. But with a ruling imminent, investors have apparently had second thoughts about whether the Centers for Medicare and Medicaid Services will follow through on those cuts, as Humana spiked up almost 9%.

Elsewhere, Tesla Motors (NASDAQ: TSLA  ) finished the day up 16%. The company announced guidance for a surprise profit in the first quarter, proving the success of Tesla's Model S electric vehicle. The big question going forward for the automaker, however, is whether there's enough demand for its high-end niche products to drive sales forward as much as Tesla needs in order to justify its current stock valuation. Meanwhile, bigger competitors are waiting in the wings to see if Tesla's experiment succeeds, and if it does, then you can expect copycats from all corners to meet the demand that Tesla will have produced.

Finally, GameStop (NYSE: GME  ) soared more than 6% on hopes that new versions of the PlayStation and Xbox will prompt a new round of purchases of the console-based video games that GameStop has traditionally relied on. Although many analysts have expected online games to continue displacing much more expensive stand-alone console games, GameStop has nevertheless held up well, thanks largely to sales of popular blockbuster series installments. For GameStop to succeed, those consoles will have to draw substantial interest -- something that's far from certain right now.

When President Obama was reelected, shares of UnitedHealth 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, 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.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2340439, ~/Articles/ArticleHandler.aspx, 9/28/2016 1:40:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:45 PM
^DJI $18228.30 Up +133.47 +0.74%
GME $27.43 Down -0.21 -0.76%
GameStop CAPS Rating: **
TSLA $205.81 Down -3.18 -1.52%
Tesla Motors CAPS Rating: **
UNH $140.79 Up +1.07 +0.77%
UnitedHealth Group CAPS Rating: ****