S&P 500, Nasdaq futures rise as tech leads, UnitedHealth weighs on Dow amid

American Airlines (AAL) earnings were below expectations for the fourth quarter as the government shutdown affected flights, but the airline shared an upbeat outlook for the beginning of the year.

The stock rose roughly 4% in premarket trading.

The airline reported earnings per share of $0.15, compared to estimates of $0.30, according to S&P Global Market Intelligence. Record revenue of $14 billion was in line with estimates.

American said that the government shutdown impacted revenue by approximately $325 million in Q4.

While bookings slowed toward the end of the year, the airline said they picked up to start 2026.

“Following softer-than-expected bookings late in the fourth quarter, bookings strengthened meaningfully in January,” the company said. “Based on these bookings, the company expects solidly positive first-quarter unit revenue for the domestic entity and the system, with total revenue growing 7.0%-10.0%.”

For the full year, American expects adjusted earnings per diluted share in a range of $1.70-$2.70, with a midpoint above the estimated $1.85.

Shares of General Motors (GM) popped in premarket after the “Big 3” automaker posted fourth quarter earnings that topped Wall Street estimates.

GM also upped its dividend and instituted a new $6 billion stock buyback plan.

Yahoo Finance’s Pras Subramanian reports:

For the quarter, GM reported revenue of $45.29 billion compared with the $45.37 billion estimated, a drop of 5.1% compared with last year.

The automaker posted Q4 adjusted earnings per share (EPS) of $2.51 vs $2.28 expected, on adjusted earnings before interest and taxes (EBIT) of $2.843 billion vs. $2.77 billion estimated.

For 2026, GM projects the following:

“We expect the US new vehicle market will continue to be resilient, and with our compelling vehicles, technology-driven services, and operating discipline, 2026 should be an even better year for GM,” CEO Mary Barra said in a statement.

“We expect our full year EBIT-adjusted margins in North America will be back in the 8-10% margin range,” she added.

Read more here.

From Bloomberg:

The European Union and India concluded a free trade agreement after nearly two decades of negotiations, as both sides seek to deepen economic ties and offset the impact of Washington’s tariff policies.

“We have concluded the mother of all deals,” European Commission President Ursula von der Leyen said on X on Tuesday. “We have created a free trade zone of two billion people, with both sides set to benefit.” Von der Leyen and European Council President Antonio Costa are in New Delhi to mark the moment.

Indian Prime Minister Narendra Modi, who announced the conclusion earlier in the day, said the agreement would strengthen India’s manufacturing and services sectors while boosting investor confidence in Asia’s third-largest economy.

The deal is expected to double EU goods exports to India by 2032 by eliminating or reducing tariffs on 96.6% of EU goods exports to India, according to a European Commission press release on Tuesday. These products range from automobiles and industrial goods to wine, chocolates and pasta. Meanwhile, the EU will eliminate or reduce tariffs on 99.5% of goods imported from India over seven years, India’s Ministry of Commerce and Industry said.

The conclusion of negotiations after years of halting talks reflects the rapidly shifting global alignment under US President Donald Trump. The EU, despite long clashing with Indian officials over trade matters, is now focused on shedding its economic reliance on the US and China. India is similarly trying to shake its protectionist reputation and offset a 50% Trump tariff, while at the same time balance its ties with Russia.

Read more here.

Shares of Micron Technology (MU) popped in premarket after the US memory chipmaker said it plans to invest $24 billion in building a new NAND facility in Singapore.

The plan to expand Micron’s manufacturing capability comes amid an acute AI demand-driven memory chip shortage that has hit a swathe of industries.

Reuters reports:

Read more here.

Bloomberg reports:

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Extended trading has seen stocks across a range of health insurers plummet. The drop was sparked by a report from the Centers for Medicare & Medicaid Services (CMS) that payment year-over-year will increase by an average 0.09% for 2027. This keeps payments relatively flat in a move well below Wall Street expectations.

Humana (HUM) saw its stock fall 12.5% following the payment rate announcement.

CVS Health (CVS) stock sank over 10

UnitedHealth Group Incorporated (UNH) shares dropped 8.6% with earnings for the beleaguered company due before the open on Tuesday. The drop is expected to weight down on the Dow Jones (^DJI) when trading resumes.

The Wall Street Journal has reported on the CMS rate over the past week, with an examination into health insurer billing revealing that government watchdogs have been concerned over pay practices in the health insurance industry.