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Payments firm Block falls as Q4 profit misses estimates
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UnitedHealth ( UNH ) drops after report of DOJ investigation
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Futures: Dow down 0.53%, S&P 500 up 0.03%, Nasdaq up 0.36%
(Updates before markets open)
By Shashwat Chauhan and Sukriti Gupta
Feb 21 (Reuters) - Wall Street's main indexes were set
for a mixed open on Friday, a day after Walmart's ( WMT ) dour forecast
hit sentiment, while UnitedHealth ( UNH ) slid after a report that the
U.S. Justice Department is investigating the healthcare
conglomerate.
UnitedHealth ( UNH ) dropped 11.4% in premarket trading
after the Wall Street Journal reported that the U.S. Justice
Department has launched an investigation into the company's
Medicare billing practices in recent months.
Shares of other health insurers were also hit, with CVS
Health ( CVS ) down 4.9% and Humana losing 5.3%.
Walmart ( WMT ) edged 0.2% higher after dropping more than
6% on Thursday - its biggest single-day decline in more than a
year - after guiding sales and profit for the year below
estimates, citing the need for caution in navigating an
uncertain geopolitical landscape.
The retail giant's plunge, along with jitters around
President Donald Trump's tariff threats and uncertainty over the
Federal Reserve's interest rate outlook, led to declines in all
three indexes.
"As long as the economy is strong, job market is strong and
consumers stay resilient, then many of the president's policies
will probably not be deleterious on the economy," said Jamie
Cox, managing partner for Harris Financial Group.
"But if the consumer starts to falter, then it
multiplies the difficulties of a tariff regime."
Earlier this week, Trump said he will announce fresh
tariffs over the next month or sooner, adding lumber and forest
products to previously announced plans to impose duties on
imported cars, semiconductors and pharmaceuticals.
The S&P 500 is set for a flat weekly finish, receding
somewhat after hitting all-time highs twice this week, while the
Dow and the Nasdaq are on pace for mild weekly
declines.
On Friday, preliminary February economic activity surveys
published by S&P Global will be released at 9:45 a.m. ET, while
the final reading of consumer sentiment calculated by the
University of Michigan is due at 10 a.m. ET.
The Personal Consumption Expenditures (PCE) reading, the
Fed's preferred gauge for inflation, would be on the radar next
week after consumer and producer prices reading earlier this
month painted a mixed picture.
Traders currently see at least one 25-basis-point interest
rate cut by the Fed this year, with a 60% chance of an
additional cut, according to LSEG data.
Several Fed officials on Thursday signaled they still feel
that cooling U.S. inflation will in time allow the U.S. central
bank to deliver further interest rate cuts.
Comments from Fed Vice Chair Philip Jefferson are due later
in the day.
At 8:32 a.m. ET, Dow E-minis were down 233 points,
or 0.53%, S&P 500 E-minis were up 2 points, or 0.03%,
and Nasdaq 100 E-minis were up 78.75 points, or 0.36%.
Block slid 9.1% after the payment firm's
fourth-quarter profit fell short of estimates.
Akamai Technologies ( AKAM ) dropped 9.5% as the
cybersecurity company forecast annual 2025 revenue below
estimates.