NEW YORK, January 17, 2026, 14:16 EST — The market has closed.
U.S. healthcare stocks wrapped up the week as the S&P 500’s weakest sector, with the Health Care Select Sector SPDR Fund (XLV) slipping 0.8% on Friday to $155.74. Anthony Saglimbene, chief market strategist at Ameriprise Financial, noted that “most investors will take that as a win,” given the market hovered near record highs despite a volatile week. 1
U.S. markets are closed Monday for Martin Luther King Jr. Day, giving healthcare investors an extended break before action resumes Tuesday. The sector has fallen behind despite earnings season picking up pace, and the upcoming company reports could shape January’s momentum. 2
The key now is if major healthcare players can stabilize the market with their guidance, not just deliver quarterly beats. Traders remain focused on the obesity drug race, looking for concrete data that might shift forecasts after a volatile week in the sector.
UnitedHealth Group dropped 2.3% to $331.02 on Friday. Merck slid 1.9% to $108.83, and Pfizer pulled back 0.9% to $25.65. Johnson & Johnson slipped 0.4% to $218.66. On the upside, Eli Lilly ticked up 0.5% to $1,038.40, while Novo Nordisk surged 9.1% to $62.33.
Novo’s shares jumped following initial U.S. prescription figures for its Wegovy weight-loss drug, offering investors an early glimpse of demand. IQVIA data, referenced by analysts, showed roughly 3,071 retail prescriptions filled in the first four days post-launch on January 5. Novo described the “early signs” as positive but cautioned it’s too soon to declare a clear trend. 3
The obesity drugs rely on GLP-1, a diabetes drug class now widely repurposed for weight loss, and their impact is shaking up the broader sector. Eli Lilly and Johnson & Johnson make up XLV’s largest stakes, roughly 14.4% and 9.3% each. UnitedHealth and Merck also rank among the ETF’s top holdings. 4
Strategists note that investors are zeroing in on earnings amid a swirl of policy updates and geopolitical tensions. “Earnings carrying the news cycle has become an absolute must,” said Art Hogan, chief market strategist at B Riley Wealth, in a Reuters Week Ahead piece. 5
Managed-care shares lagged heading into the weekend, with Humana slipping 3.8% on Friday, per MarketWatch. This sector often moves like a macro play, as investors quickly price in signs of cost pressures or shifts in utilization. 6
The setup is messy. Early prescription data can either overstate or misrepresent the reality, while the sector continues grappling with pricing battles, insurance coverage rulings, and the typical “guidance gap” between what companies disclose now and what investors expect to hear.
Upcoming earnings dates are set to move markets. Johnson & Johnson will report its fourth-quarter results on Wednesday, January 21, with the earnings call starting at 8:30 a.m. ET. UnitedHealth plans to announce its full-year 2025 numbers and 2026 guidance on Tuesday, January 27, ahead of the opening bell, followed by a call at 8:00 a.m. ET. 7
When markets open Tuesday, investors will be eyeing whether healthcare extends Friday’s slide or steadies before upcoming reports. New data on obesity pill adoption—particularly how much comes from cash-pay patients rather than insurance—will likely steer the sector’s direction.
