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- Weekly Wrap-Up - April 19th, 2025
Weekly Wrap-Up - April 19th, 2025
Trump wants to fire Powell, while more trade war news rattles markets
CMG Venture & Mark Roussin
April 19, 2025
In partnership with
Good morning investors!
If this is your first time reading, welcome to The Investor’s Edge — a thriving community of over 23,000 subscribers striving to be better investors with an edge in the market.
Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!
This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.
Grab your coffee and let’s dive in.
Market Talk
All three major indexes finished the week lower, with MAG7 stocks and UnitedHealth dragging down the overall indexes.
3 Stories Moving the Market
These are some of the biggest stories from the second half of the week that had an influence on market action.
Trump says Powell termination can't come fast enough
President Donald Trump has intensified his attacks on Federal Reserve Chair Jerome Powell, declaring that Powell’s "termination cannot come fast enough" and urging immediate rate cuts, similar to the European Central Bank.
Trump has reportedly spoken with former Fed Governor Kevin Warsh about replacing Powell, although Warsh has advised against interfering with Powell’s tenure, which runs through May 2026.
Despite Powell's assertion that the Fed’s independence is widely respected in Washington, Trump has continued pressuring the central bank, even suggesting in the Oval Office that he could swiftly remove Powell if desired.
These moves have raised alarm across political lines, with critics warning that undermining the Fed’s independence could severely damage U.S. markets.
👉 EDGE TAKEAWAY: If Trump tries to fire Fed Chair Jerome Powell or brings in someone who will do whatever he says on interest rates, it would …upgrade to Edge+ to read the Full Edge Takeaway.
UnitedHealth’s stock plunges on higher medical costs
UnitedHealth Group shares plunged 20% after the company sharply cut its full-year profit forecast, citing a major spike in medical costs tied to its Medicare Advantage plans.
This unexpected surge in care usage—especially in outpatient services—came in at nearly double the company’s expectations and is raising alarms across the health insurance sector. The rising costs stem partly from seniors resuming delayed procedures post-COVID and potential pullbacks in cost-control efforts amid public scrutiny and DOJ investigations.
Analysts warn that UnitedHealth’s issues could signal broader trouble for insurers heavily exposed to Medicare Advantage, like Elevance and Alignment Health. Meanwhile, companies like Humana and CVS, which exited unprofitable MA markets last year, may be less affected.
Despite the turmoil, UnitedHealth remains confident these pressures are manageable by 2026, and insurers may see relief next year after the Trump administration raised MA reimbursement rates.
📚 EDGE-UCATION: What is medicare advantage and what do higher medical costs mean for insurance companies?
Medicare Advantage (MA) is a type of health insurance plan offered by private companies like UnitedHealth, Humana, and CVS, but funded by the federal government. Instead of using traditional Medicare (Parts A and B), seniors can enroll in MA plans that often include extra benefits like dental, vision, and drug coverage. The government pays insurers a fixed amount per enrollee, and the insurer then covers the cost of care.
Higher medical costs mean that enrollees are using more healthcare services than expected—like doctor visits, surgeries, or outpatient care. For insurers, this is a problem because their government payment stays fixed, but their costs go up. If the care provided ends up costing more than what the government pays, the insurer absorbs the loss. That squeezes profit margins and often leads to lower earnings, stock selloffs, and sometimes even cutbacks in coverage or provider networks the next year.
So when a major player like UnitedHealth reports a spike in medical costs in its Medicare Advantage business, it’s a warning sign that others in the space could face similar financial pressure.
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Earnings season carries on with several major companies reporting
Several major companies kicked off earnings season this week. Here’s a brief recap of each report:
Taiwan Semi $TSM ( ▲ 0.05% ) reported strong Q1 results with solid revenue growth and continued strength in advanced node platforms.
EPS: $2.12 vs. $2.07 est.
Revenue: $25.53B vs. $25.41B est.
UnitedHealth $UNH ( ▼ 22.38% ) posted mixed Q1 results, with strong revenue growth and solid operational earnings offset by rising medical costs in Medicare Advantage and adjusted guidance for the full year.
EPS: $7.20 vs. $7.29 est.
Revenue: $109.58B vs. $111.58B est.
Netflix $NFLX ( ▲ 1.19% ) delivered strong Q1 results with double-digit growth across key metrics, driven by higher pricing and early signs of traction in its advertising business.
EPS: $6.61 vs. $5.73 est.
Revenue: $10.54B vs. $10.50B est.
Johnson & Johnson $JNJ ( ▲ 2.31% ) posted solid Q1 results, driven by balanced growth across its Innovative Medicine and MedTech segments, along with strong cash generation and robust pipeline progress.
EPS: $2.77 vs. $2.58 est.
Revenue: $21.89B vs. $21.56B est.
*Note - our full breakdowns of these reports, along with graphics similar to the UNH one above and our takeaways from each report was sent out in Friday’s Earnings Recap.
In Other News
In this section, we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.
Google hit with second antitrust blow, adding to concerns about future of ads business
Netflix posts major earnings beat as revenue grows 13% in first quarter
Taiwan Semiconductor Beats Q1 Targets On Strong AI Chip Sales
Tesla speeds up odometers to avoid warranty repairs, U.S. lawsuit claims
Trump administration announces fees on Chinese ships docking at U.S. ports
Global Payments agrees $24.25 billion Worldpay deal as industry heavyweights shift focus
Blackstone beats first-quarter profit estimate, but CEO warns of tariff disruption
Charles Schwab Surges On Earnings Beat; New Assets, Trading Volume Jump
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Edge+ Posts of the Week
We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.
The Edge Report
Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed the volatility we are seeing in markets, the impacts of tariffs, and the upcoming earnings reports. See the latest full report here:
The Options Edge Report
This week we dropped the latest Edge Options Report for our members—packed with actionable insights and options strategies. We broke down a play on Apple following the recent weakness. See the latest report here:
Earnings Recap
Every week during earnings season is extremely busy for us here at the Edge as we dive into over 100 reports and provide our members with top tier breakdowns and insights. This week we saw earnings from Taiwan Semi, UnitedHealth, Netflix and more. See this week’s recap:
The Week Ahead
Earnings season carries on with several major companies reporting, while it’s a pretty quiet week on the economic news front.
Earnings Reports
Next week is one of the bigger weeks of the earnings season with 12 names we cover here at Edge on the calendar. Here is the list of names we will be covering:
Monday 4/21: --
Tuesday 4/22: Tesla, Verizon, and Lockheed Martin
Wednesday 4/23: IBM, Lam Research, and Chipotle
Thursday 4/24: Alphabet, Procter & Gamble, Pepsico, Merck, and Intel
Friday 4/25: AbbVie
Here is the full calendar of scheduled earnings releases:
Source: Earnings Whispers
Economic Reports
Next week is relatively quiet on the economic report front, but there are some reports later in the week still to watch.
We get initial jobless claims, composite PMI data, several housing reports, and consumer sentiment. There’s also several Fed speeches that could move markets.
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Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!
Until next time investors!
Mark & Chris
The Investor’s Edge
Disclosure
This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
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