US stocks are opening up mixed.UnitedHealth group earnings disappointed pressuring the Dow

The major indices are opening up mixed with the Dow industrial average down sharply while the NASDAQ and S&P index are rebounding after yesterday’s declines.

UnitedHealth Group (UNH) reported Q1 earnings that missed expectations, with EPS of $7.20 vs. $7.37 expected, and revenue of $109.6 billion vs. $111.55 billion expected. The company also cut its full-year EPS guidance to $26–26.50, down from a prior range of $29.50–30.00. The disappointing results were driven by revenue pressure from ongoing Medicare funding reductions and a shift in member mix, along with higher utilization of senior care services.

The outlook was further downgraded due to unexpectedly high care activity within UnitedHealthcare’s Medicare Advantage business, especially in physician and outpatient services. Additionally, changes in the profile of Optum Health members and low 2024 engagement with reimbursement plans contributed to concerns for 2025 projections.

UNH is trading down close to 18% and contributing largely to the Dow industrial average decline of nearly 500 points.

Taking a snapshot of the market currently shows:

• Dow industrial average is trading down -517 points or -1.30% at 39155
• S&P index is trading up 10.02 points or 0.19% at 5285.
• NASDAQ index up 12 points or 0.08% at 16318

TSMC reported a strong Q1 with net profit of TWD 361.6 billion (beating expectations of TWD 354.6 billion), operating profit at TWD 407.1 billion, and revenue at TWD 839.3 billion, sharply higher than the TWD 592.6 billion from a year ago. Capital expenditure rose significantly to TWD 10.06 billion, up from TWD 5.77 billion.

For Q2, TSMC expects revenue between USD 28.4–29.2 billion (above consensus), with gross margins projected at 57–59% and operating margins at 47–49%. Despite rising concerns around U.S. tariffs, the company noted no change in customer behavior and reaffirmed its forecasts.

TSMC highlighted robust AI-related demand, with revenue from AI expected to double in 2025. It’s aggressively expanding capacity, particularly in Arizona, to meet strong U.S. customer needs—including Apple. The company is advancing its CoWoS packaging capacity, expects 2nm production in Arizona, and remains on track with its N2 volume rollout in H2 2025. TSMC also dismissed any joint venture talks and continues to scale its U.S. operations, noting the need for over 1,000 engineers at its R&D center.

Guidance for 2025 remains unchanged, with capex at USD 38–42 billion, and revenue forecasted to grow by mid-20% in USD terms. CoWoS supply and demand are expected to become more balanced in 2026.

Share shares of TSMC are up 2.95%.

Nvidia shares are still lower at -1.34% after declining closed 7% yesterday.

Amazon shares are down one dollar or -0.52% at $173.40. Alphabet shares are up 0.33%. Microsoft are up 0.20%.

This article was written by Greg Michalowski at www.forexlive.com.