Eli Lilly rises 3.49%, UnitedHealth gains 3.04%
3M jumps 5.78% after raising profit outlook; major tech stocks underperform
Healthcare stocks rallied on Wall Street on October 20 (local time), driving the Dow Jones Industrial Average higher. 3M also surged significantly after releasing its earnings and upbeat annual profit guidance. Conversely, the Nasdaq Composite finished little changed in negative territory as major technology stocks, including Apple and Microsoft, retreated.
The Dow advanced 1.02% to close at 52,495.88. The S&P 500 rose 0.28% to 7,712.57, while the Nasdaq slipped 0.02% to end the session at 26,424.82.
In the healthcare sector, pharmaceutical companies and health insurers moved higher in tandem. Eli Lilly climbed 3.49% to finish at $1,283.66. UnitedHealth advanced 3.04%, Johnson & Johnson rose 2.19%, Merck and Amgen gained 3.25% and 3.29%, respectively, and Elevance Health moved up 2.31%.
3M underpinned the Dow's gains, closing up 5.78% at $171.37. The company reported a third-quarter adjusted earnings per share (EPS) of $2.50, marking a 12% increase year-on-year on a comparable adjusted basis. It raised its full-year adjusted EPS outlook to $9.10–$9.15 from the previous range of $8.95–$9.10, converted under the new calculation method. 3M excluded intangible asset amortization expenses from its non-GAAP adjusted results for this period and applied the same standard to the comparative prior periods.
Financial shares also joined the upward trend. JPMorgan Chase rose 0.52%, and Bank of America added 0.50%. Goldman Sachs and Morgan Stanley advanced 1.03% and 1.08%, respectively, while Berkshire Hathaway Class B shares gained 1.43%.
Major technology stocks saw widespread declines. Apple fell 1.00%, Microsoft dropped 0.31%, and Alphabet Class A shares lost 1.13%. Meta and Netflix declined 1.59% and 1.66%, respectively. Tesla rose 1.54%, while Amazon managed a negligible gain of 0.07%.
Key semiconductor stocks were also weak. Nvidia fell 0.29%, AMD dropped 0.62%, and Micron lost 0.98%. Equipment makers suffered sharper losses, with Lam Research down 3.21%, KLA falling 2.80%, and Applied Materials dropping 1.97%.
Within the technology sector, however, software and data storage stocks posted gains. Adobe rose 3.90%, ServiceNow gained 2.88%, and Oracle advanced 1.20%. Western Digital and Seagate also climbed 3.44% and 2.17%, respectively. Despite the slump in major platform companies and semiconductor equities, buying interest persisted across select industries.
Market participants attributed this rotation to lingering caution over artificial intelligence (AI) return on investment, which has prompted investors to seek opportunities outside the tech sector. According to Reuters, Jim Baird, Chief Investment Officer at Plante Moran Financial Advisors, explained that amid persistent skepticism regarding the monetization of AI investments, a rotation into other areas of the market is underway. He cited gains in small-cap stocks and healthcare as prime examples, pointing to healthcare as one of the primary beneficiaries of this trend.
Meanwhile, international crude oil prices surrendered intraday gains and finished lower. December Brent futures hit an intraday five-month high of $111.99 per barrel before settling down 0.69% at $108.79. As the Pakistani army chief—who has been mediating between the U.S. and Iran—met with the Iranian president, markets closely monitored both diplomatic mediation efforts and supply disruption risks stemming from attacks on Middle Eastern energy facilities and shipping vessels.
