Market Insight and Analysis. You're listening to the opening bell of CNBC, Squawk on the Street.

Good Thursday morning. Welcome to Squawk on the Street. I'm Sarah Eisen with Carl Continia and David Faber. We are live from post nine of the New York Stock Exchange. Stalks are doing okay. We're building on some gains this morning, except for the Dow. That's a United Healthcare story. Dow's down 439 points. The S&B 500 is higher by about four-tenths of a percent. The NASDAQ coming back. We lost a lot of ground yesterday, but it's up about a quarter of a percent right now. Just show you what's happening in Treasury's mixed picture, 10-year and 30-year yields higher, short-end. You're

seeing some buying with the two-year yield 3.7. Did get some better jobless claims data for the

past week. Let's get to the two big stock stories of the day. UNH, as Sarah said, on pace for their

worst day since 2008 after

slashing their forecast, while new obesity pill data is helping Lily shares aim for their best

daily performance since 23. We've got Bertha Coombs and Angelica Peebles tracking the action this morning.

Bertha, let's begin with you. Carl, it's a rare miss by United Health and both the top and the bottom line, and they say it's driven by higher medical costs.

They're attributing it to some of the issues left over from the Biden era.

This in the Medicare Advantage business.

Now, the premiums and reimbursement rates that are lower have resulted in a lot of patients switching insurers because a lot of insurers left different markets.

And as a result, a lot of those patients are paying higher premiums. And United says what they are seeing in their physician groups is that a lot of those people are utilizing more care in a sense, maybe trying to get more of their money's worth.

But they are also seeing this in their own Medicare Advantage plans.

We had planned for 2025 care activity to increase at a rate consistent with the utilization trend we saw in

2024.

Instead, though, first quarter 2025 indications suggest care activity increased at twice that rate.

Increases in physician and outpatient services were most notable and inpatient to a lesser extent.

Now that Medicare advantage rate of that medical care cost rate only came in at 84.8% which is well below what they had forecast for the full year.

But given the trends that they're seeing and the fact that people actually use more care later in the year,

they are now raising the full year forecast, that medical care ratio,

how much of the premium goes towards medical costs to 87.5%.

That is definitely weighing on their peers who are likely experiencing some of the same

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