Chips slide again. Healthcare holds

Rundown · 2026-07-17

Semis extended their slide (KOSPI -6%, Nasdaq -1.74%) but strong healthcare earnings + firm data cushioned the tape: ABT +11%, MAN +32%, UNH +8%; retail sales +0.2%, claims fell to 208K. NFLX -10% AH on soft guide sets up tech earnings.

Market Performance

• S&P 500: 7,513.16 (-0.78%) — chip weakness offset healthcare + defensive strength
• Nasdaq: 25,814.56 (-1.74%) — day's worst; semis extended the slide
• Dow: 52,552.97 (-0.20%) — -106 pts; healthcare cushioned the drop
• Russell 2000: 2,974.57 (-0.06%) — nearly flat; still just below 3K
• Sector leaders: Healthcare, Staples, Financials · Laggards: Tech, Semis
• 10Y yield: 4.56% — ticked higher; WTI crude: ~$79 — eased but well above June lows
• KOSPI -6%+ — semiconductor pressure; TSMC slide fed the global chip weakness
• S&P 500 <1% daily move for 11 straight days — masking an aggressive sector rotation

Rotation Deepens: Chips Bleed, Healthcare + Value Bid

• Semis extended the slide — WDC -7.2%, SNDK -5.4%, COHR -5%, MRVL + GLW -6.7% weak
• Money keeps rotating OUT of tech/memory INTO healthcare, staples, financials, industrials
• ABT +11% — Q2 beat + raised FY26 adj EPS guide to $5.45-5.60; UNH +8% on strong Q2
• DXCM +7% on healthcare strength; Cintas +6.5% on BofA upgrade to Buy
• Retail sales +0.2% — just below est; gas stations -5.3% (price-driven)
• Jobless claims fell to 208K; Philly Fed hit a near 5-year high — data firm

Earnings Momentum + M&A Wave Continues

• S&P 500 Q2 EPS growth now tracking ~23% — up from ~14% at the quarter's start
• MAN +32% — returned to profitability, beat, guided Q3 above; NFLX -10% AH on soft Q3 guide
• Uber to acquire Delivery Hero for $14.8B — UBER +3%; global delivery consolidation
• Eli Lilly to buy AtaiBeckley for up to $3.8B — psychedelics; ATAI surged, LLY -1%
• Next week: GOOGL + TSLA report, then META, MSFT, AMZN, AAPL — AI-capex in focus

Notable Movers

• (MAN) +32% — Returned to profitability in Q2, beat estimates, and issued Q3 EPS guidance above expectations
• (ABT) +11% — Beat Q2 earnings expectations and raised its full-year 2026 adjusted EPS guidance
• (SG) -7% — Concerns over a cyclosporiasis outbreak, a parasitic infection spread through contaminated raw produce

Private Dealmaking

• Delivery Hero (food delivery · Uber acq.) — $14.8B
• Rotork (electric actuators · ABB) — $5.5B
• AtaiBeckley (psychedelic treatments · Lilly) — up to $3.8B
• Fireworks (custom AI training) — $1.5B
• Walden Robotics (general-purpose robotics) — $300M
• Astro Mechanica (supersonic jet engines) — $250M

TLDR

• S&P -0.78% to 7,513.16; Nasdaq -1.74% on chip slide; Dow -106 pts (healthcare cushioned)
• KOSPI -6%+ on semis; WDC -7.2%, SNDK -5.4%; S&P now <1% daily for 11 straight days
• ABT +11%, UNH +8%, MAN +32% — healthcare + value led; retail sales +0.2%, claims 208K
• NFLX -10% AH on soft Q3 guide (rev narrow miss); cautious tone for tech earnings
• Uber-Delivery Hero $14.8B, Lilly-AtaiBeckley $3.8B, ABB-Rotork $5.5B — M&A wave
• S&P Q2 EPS tracking ~23% (from ~14%); GOOGL + TSLA next week, then MSFT/META/AMZN/AAPL

The Bottom Line

The rotation is the whole story now — and it's healthy. The S&P has moved less than 1% for 11 straight days, but under that calm surface money is aggressively leaving chips (KOSPI -6%, Nasdaq -1.74%) for healthcare and value (ABT +11%, UNH +8%). Strong data (claims 208K, Philly Fed 5-year high) + Q2 EPS tracking ~23% support the broadening. But NFLX -10% after hours on a soft guide is the warning shot: with GOOGL, TSLA, then the rest of the Mag 7 reporting over the next two weeks, "beat but guide soft" is the setup that could crack the megacap bid.

_For informational purposes only. Not investment advice._