S&P 500 Gains and Losses Today: Health Insurers Slide as Elevance Cites Medicaid Declines

Key Takeaways

• The S&P 500 was essentially flat on Thursday, Oct. 17, closing less than 0.1% lower despite strong retail sales data and a resurgence in AI chip stocks.
• Shares of health insurance companies dropped after Elevance Health missed quarterly profit estimates, pointing to declines in Medicaid enrollments.
• Increased premiums and investment income helped drive strong results for Travelers despite high catastrophe losses, and shares of the insurer surged.

Major U.S. equities indexes were mixed as earnings results from Taiwan Semiconductor Manufacturing (TSM) helped revitalize optimism around artificial intelligence (AI) and September retail sales data came in ahead of forecasts.

After trading higher for most of the session and posting an all-time intraday high, the S&P 500 lost steam in the afternoon to close the session less than 0.1% lower. The Nasdaq eked out a minimal gain of less than 0.1%, while the Dow added 0.4% to print its second straight record close.

Health insurer shares moved lower after industry player Elevance Health (ELV) missed profit estimates with its third-quarter results and lowered its guidance for the full year. The company attributed the shortfall to declines in Medicaid enrollments stemming from eligibility redeterminations and other changes. Elevance shares dropped 10.6%, while losses spread to other health insurance stocks with Medicaid exposure. Shares of Molina Healthcare (MOH) plunged 12.6%, the steepest drop in the S&P 500, while Centene (CNC) stock lost 9.1%.

CSX (CSX) shares tumbled 6.7% after the freight shipper's quarterly sales and profits fell short of analysts' expectations. Hurricanes Helene and Milton weighed on the company's results, while a decline in coal revenue and lower fuel charges also restrained revenues.

Shares of Snap-On (SNA), a provider of tools and equipment for professional users across various industries, soared 10.0% to notch Thursday's top performance in the S&P 500. The gains came after Snap-On released its third-quarter financial results, matching analysts' revenue forecasts but exceeding earnings per share (EPS) expectations. In its largest segment, which sells tools and services to auto repair shops, Snap-On posted 4% quarter-over-quarter sales growth, suggesting a potential turnaround in that key market.

The Travelers Companies (TRV) shares surged 9.0% following the insurer's third-quarter earnings report. Despite a year-over-year uptick in catastrophe losses stemming from Hurricane Helene and other severe weather events, Travelers more than tripled its net income compared with the year-ago period, boosted by higher premiums and increased investment income. The company also reported an improvement in its consolidated combined ratio—a key gauge of profitability for insurance companies.

Investment management firm Blackstone (BX) reported better-than-expected profits alongside an increase in assets under management for the third quarter, and its shares jumped 6.3%. Blackstone's CEO noted that the firm invested or committed more than $54 billion during the quarter—the highest amount in more than two years. Blackstone's overall fund appreciation during the quarter also reached its strongest level in three years.

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