Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Tuesday, January 27th, and I'm your host, Kim Khan. Our top story so far,

United Health Group is plunging, along with other managed care names, after Q4 revenue and its

full-year revenue outlook both fell short of Wall Street forecasts, hitting an industry already

reeling from an unfavorable Medicare rate decision. The number one player in the Medicare

Advantage market is down nearly 20 percent, dragging the Dow into the red. Fumana, CVS,

Cigna, Clover Health, and Alignment Healthcare are also under pressure.

The Trump administration has proposed nearly flat reimbursement rates for Medicare Advantage

payers in 27. The average payment increase is slated at just 0.09%, roughly $700 million

overall. Street analysts have been looking for a 4-6% rise. United Health reported adjusted

EPS of 210 for the

quarter in line with the consensus, while Q4 revenue came in at $113.2 billion, missing forecast by

about $520 million, despite 12% year-over-year growth. For 2026, the company projects adjusted EPS of

more than 1775, roughly in line with the 1776 analysts expect, on more

than $439 billion in revenue below the streets forecast of $456 billion. Edmund Ingham,

seeking off his investing group leader for Haggerson BioHealth, called it a somewhat disastrous start

for the new year for America's largest health insurer. It looks as though United

Health shareholders are in for more pain after a tough 2025, which saw shares decline by about 30%, he added.

Also in earnings, Boeing is lower, despite Q4 results that beat expectations on earnings and revenue,

as investors weigh strong delivery growth against ongoing operational and financial concerns. Boeing is still posting losses in key units. The commercial airplane segment recorded an operating loss of $632 million in the quarter, while defense space and security had a $507 million operating loss that included around $600 million of charges on the KC-46A tanker program tied to higher production support and supply chain costs.

United Parcel Service posted EPS of 238, topping the 220 consensus.

U.S. domestic segment revenue fell 3.2% year-over-year to $16.8 billion versus $16.3 billion expected.

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