U.S. stock index futures traded slightly higher on Friday, though they pared some gains just ahead of the release of July retail sales data.
- Among the indices, the Dow Jones Industrial Average (US30) stands out, supported by renewed buying interest in shares of key U.S. health insurer UnitedHealth (UNH.US). Berkshire Hathaway revealed a stake in the company, boosting its stock price. Similar gains are seen in homebuilding names Lennar and DR Horton.
- Investors are also watching Intel, which is breaking above key technical resistance levels on news that the U.S. government may take a stake in the chipmaker.
- U.S. President Donald Trump and Russian President Vladimir Putin are set to discuss a possible ceasefire in Ukraine (7 PM GMT)
Traders await key U.S. macroeconomic releases:
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12:30 PM GMT – July retail sales
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1:15 PM GMT – Industrial production
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2 PM GMT – University of Michigan consumer sentiment and inflation expectations (August prelim)
US30 (Daily Interval)
Source: xStation5
Company News
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UnitedHealth (UNH.US) – Shares jumped 11% after Warren Buffett’s Berkshire Hathaway disclosed a new investment in the unpopular health insurer. Investors see this as a potential “value” opportunity despite regulatory uncertainty and possible penalties related to Medicare programs.
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Intel (INTC.US) – Pre-market gains of nearly 4%, extending earlier advances, after Bloomberg reported the Trump administration is considering taking a stake in the chipmaker. The market views this move as strategically securing Intel’s position as a key domestic producer with reliable supply chains.
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Applied Materials (AMAT.US) – Shares plunged nearly 15% after the semiconductor equipment maker issued weak fourth-quarter guidance due to sluggish Chinese demand. The report heightened concerns over tariff-related risks and underscored that heavy exposure to China is overshadowing growth in the U.S. business.
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DR Horton (DHI.US) & Lennar (LEN.US) – Both up close to 4% after Berkshire Hathaway increased its exposure to the U.S. homebuilding sector, revealing a new stake in DR Horton and a significantly larger position in Lennar.
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Target (TGT.US) – Shares fell nearly 2% after Bank of America downgraded the retailer from “neutral” to “underperform,” citing a “deteriorating” long-term outlook and mounting competitive pressure from major rivals.
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SanDisk (SNDK.US) – Down nearly 10% despite strong quarterly results, as the flash memory maker failed to meet investors’ unofficial expectations, triggering profit-taking.
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Tapestry (TPR.US) – Up 2% after Wells Fargo raised its price target while maintaining its “overweight” rating, saying the recent sell-off was overdone.
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Twilio (TWLO.US) – Gained over 4% as the cloud communications company is set to join the S&P MidCap 400 following UnitedHealth’s acquisition of Amedisys, which could prompt increased institutional buying.
UnitedHealth in Focus
Following massive recent declines, UnitedHealth’s share price is now nearly 50% below its all-time high and still around 25–30% below its 200-day EMA (red line) — a situation last seen during the COVID-19 panic. Buffett’s involvement may signal to investors that UNH is now attractively valued, prompting Wall Street to reassess the company’s long-term fundamentals.
Intel Breakout
Intel shares moved above the 200-day EMA yesterday, reversing a downward trend. Today’s pre-market gains open the way toward local highs.
Source: xStation5
