Although the S&P 500 ETF (SPY) - Get Report fell less than 0.1% on Thursday, the Health Care Select Sector SPDR ETF (XLV) - Get Report didn't fare quite as well, falling 1.7% on the day. The sector is now down 6.4% over the past three months.
One of the day's bigger losses included UnitedHealth Group (UNH) - Get Report , which fell 5.65% after the company announced it earnings for 2015 would come in below previous expectations. Part of the blame was on the Affordable Care Act.
On CNBC's "Fast Money" TV show, Karen Finerman, president of Metropolitan Capital Advisors, argued that UnitedHealth Group was late to the Affordable Care Act party, so to say. As a result, the company had to price its services aggressively to win market share, which hurt profitability.
In other words, Finerman doesn't think it's as much of an industrywide issue, as it is a company-specific issue. She said the selloffs in Molina Healthcare (MOH) - Get Report and Anthem (ANTM) - Get Report of 12.3% and 6.9%, respectively, were overdone.
$110 should be decent support for UnitedHealth. But Dan Nathan, co-founder and editor of riskreversal.com, said it's not worth the risk to get long right now. Guy Adami, managing director of stockmonster.com, added that he would rather buy the stock on a rally above $115, rather than take the risk of buying it at current levels.
Brian Kelly, founder of Brian Kelly Capital, took a bigger picture approach, saying hospitals and biotech companies thought they would be able to fetch far higher prices as a result of more consumers being insured. But a pushback by the insurance companies could spell trouble for them. He's a seller of the iShares Nasdaq Biotech ETF (IBB) - Get Report .
Nathan added that the XLV ETF could fall into the mid-$60s if it does not hold $70.
Sam Poser, managing director at Sterne Agee CRT, said these moves highlight just how well the company is doing right now, and he expects that momentum to continue into 2016. It actually helps that its competitors, like Under Armour (UA) - Get Report , are also doing well, as it shows the fundamentals for the industry remain strong. If it weren't for forex headwinds, Nike would likely achieve its aspiration for $50 billion in revenues by 2020 even earlier.
Even though Under Armour has an enormous valuation, investors have to do their best to look past it, Nathan said. Some stocks - like Netflix (NFLX) - Get Report - have incredible growth and unreasonable valuations, but that doesn't stop the stock from going higher. He's a buyer of Under Armour at $80, now that the stock has closed below its 200-day moving average for the first time in years.
Robert Peck, managing director at SunTrust Robinson Humphrey, helped break it down for investors. Basically, there is a risk -- a small risk -- but a risk nonetheless, that Yahoo! will have to pay taxes on the spinoff. Due to its massive size, that tax bill could balloon into the tens of billions of dollars.
Rather than take that risk, the suggestion is to spin off or sell the core business instead, which would likely result in a tax bill of just $1 billion to $2 billion. But who would buy the declining core business? Peck suggests traditional media or telecom companies might be interested, as well as private equity.
Peck said it might be a good idea for the company to put the spinoff on old, to weigh its different options. He has a buy rating and $40 price target on the stock.
Investors looking to buy Yahoo! should just forget about the stock and go with Alibaba, Kelly said. Yahoo!, for the most part, is just a holding company for Alibaba, so it really comes down to whether investors want to own the latter or not -- without the complications of Yahoo!.