UnitedHealth rallies premarket while chip stocks retreat; TSMC earnings lift A

Investing.com -- U.S. stock index futures were mixed on Thursday as investors weighed lingering Middle East tensions, and focused on corporate earnings and further signs that U.S. inflationary pressures are easing.

By 08:10 ET, S&P 500 futures edged down 0.3%, Nasdaq 100 futures fell 1%, while Dow Jones futures rose 0.1%.

Semiconductor stocks were under pressure despite another blockbuster quarter from Taiwan Semiconductor Manufacturing Co., whose second-quarter profit surged 77% year-on-year to a record level, comfortably beating Wall Street expectations.

The world’s largest contract chipmaker posted earnings per share of $4.31, ahead of estimates for $3.80, but shares fell about 4% in premarket trading as investors digested an expanded capital expenditure plan and the potential for near-term pressure on margins.

The cautious reaction spilled across the broader chip sector. Nvidia, TSMC’s largest customer, slipped 1.3%, while AMD, Intel, and Micron Technology fell between 1.9% and 2.7% as investors assessed the implications of higher industry investment spending.

UnitedHealth Group jumped 7.6% after delivering a stronger-than-expected second-quarter performance.

The health insurer reported adjusted earnings of $6.38 per share, comfortably ahead of analyst estimates, while revenue also exceeded forecasts as strength across its healthcare businesses reassured investors following months of uncertainty in the managed care sector.

Abbott Laboratories climbed 4.4% after the medical products maker beat expectations on both revenue and earnings and said sales of its continuous glucose monitoring products are on track to return to double-digit growth, easing concerns over slowing demand.

In contrast, GE Aerospace slipped 4.3% despite posting quarterly results that topped Wall Street estimates. Investors appeared to lock in profits after a strong run in the stock, with analysts having previously cautioned that much of the positive outlook had already been reflected in the share price.

U.S. Bancorp declined 2.4% even after reporting record quarterly revenue and earnings that exceeded expectations, suggesting investors had largely priced in the lender’s strong performance following recent gains.

Psychedelic drug developers also attracted buying interest after Eli Lilly agreed to acquire AtaiBeckley, boosting optimism across the sector. AtaiBeckley surged more than 30%, while GH Research gained nearly 19% and Compass Pathways advanced over 7% in premarket trading.

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