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Here’s what’s happening in the stock market today:
US stock futures are mixed in early trading on January 27, 2026, with Dow futures slightly down amid health insurer weakness, while S&P 500 and Nasdaq futures rise on tech strength ahead of Big Tech earnings. Markets build on Monday's gains, where the Dow rose 0.6%, S&P 500 up 0.5%, and Nasdaq up 0.4%, but face pressures from new tariff announcements and upcoming economic data.
Major Indices 📊
Dow Jones futures are down about 0.2-0.5%, pressured by UnitedHealth's weak outlook and health sector slides.
S&P 500 futures up roughly 0.2-0.7%, near all-time highs after Monday's close around 6,950.
Nasdaq futures higher by 0.8-1.1%, boosted by semiconductors and pre-earnings optimism in Apple, Meta, Microsoft.
Market Movers 🚀
UnitedHealth (UNH) slides sharply premarket after cautious 2026 guidance and flat Medicare rates under Trump admin.
UPS surges on beating quarterly earnings expectations.
General Motors (GM) rises despite quarterly loss; Humana (HUM), Corning also active premarket.
Health insurers broadly tumble on Medicare rate news.
Key Events 🗞️
Trump admin signals nearly flat Medicare rates for insurers, hitting health stocks.
Trump announces 25% tariffs on South Korea over trade deal delays, but Kospi up 2.7%; follows Canada warnings.
Heavy earnings week: 90+ S&P 500 firms including Big Tech (Apple, Meta, Microsoft); Fed policy update soon.
Economic data: ADP employment, consumer confidence, housing metrics today.
Sentiment 👀
Investors balance optimism from recent records and tech momentum against tariff risks, health sector woes, and data ahead. Trading subdued premarket with focus on earnings and policy shifts under President Trump.
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TRADE OF THE DAY:
XME
Name: SPDR S&P Metals & Mining ETF (via State Street Global Advisors)
Symbol: XME
Current Price: Approximately ~$127.14 (latest market quote)
Trade
Sell to Open: 1 XME Feb 20, 2026 113/108 Put Vertical
Total Credit Received: $57.00
Credit per Contract: $57.00 (for one contract covering 100 shares)
Direction: Bullish (expects XME to stay above the break-even level)
Probability of Profit (PoP): 84.47%
Potential ROI:
Max Risk (Loss): $443.00
ROI: ($57 ÷ $443) × 100 ≈ 12.9%
Trade Explained in Simple English:
You’re entering a bullish put credit spread by selling the 113 strike put and buying the 108 strike put on XME that expire on February 20, 2026. You collect $57 upfront when placing the trade. As long as XME stays above about $112.43 by expiration, the position will be profitable and you keep the credit; your maximum loss of $443 occurs if XME falls below $108, which limits your downside risk.
Wall Street Highlights:
News Beyond the Numbers
The Trump administration proposed nearly flat Medicare Advantage payment rates for 2027 at a net average increase of 0.09%, far below Wall Street's expected 4-6% rise, prompting sharp declines in health insurers like Humana and UnitedHealth. Read more.
President Trump threatened to raise tariffs on South Korean goods from 15% to 25%, targeting cars and pharmaceuticals unless its legislature ratifies a prior trade deal. Read more.
India and the European Union finalized a comprehensive free-trade agreement amid global realignments spurred by President Trump's trade policies. Read more.
JPMorgan raised its price target on Apple to $315 from $305 ahead of earnings, citing strong iPhone demand, while Evercore ISI added it to its Tactical Outperform list with a $330 target. Read more.
Bank of America reiterated a buy rating on Meta Platforms with an $810 price target, forecasting Q4 revenue of $59.2 billion and EPS of $8.27, surpassing consensus estimates. Read more.
Disclaimer: The content provided by OptionPicks is for informational and educational purposes only and should not be construed as investment, financial, legal, or tax advice. We are not registered as a broker-dealer, investment adviser, or financial advisor with the SEC, FINRA, or any other regulatory authority. Options trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results, and no representation is being made that any subscriber will or is likely to achieve profits or incur losses similar to those mentioned. You should consult with a licensed financial professional before making any investment decisions.
