Health care companies pull stock market higher

Posted March 22, 2010 at 12:06 p.m.

Associated Press | Health stocks lifted the market Monday following House approval of an overhaul bill that would extend insurance to millions. Drug maker Pfizer Inc. rose 32 cents to $17.23, while insurer Aetna Inc. rose 38 cents to $34.84.

Investors had expected the health care bill would pass the House, but the approval late Sunday removed uncertainty about the rules that would govern the industry. A companion bill now goes back to the Senate. The changes could have far-reaching effects on health insurers and drug makers.


Stocks opened lower following more doubts about Greece’s ability to repay its debt. Concern about the country’s fiscal crunch pushed investors into the safety of the dollar. The rising dollar hit shares of energy and commodity producers, who see demand fall when the dollar strengthens.

The latest concern is that Greece might not get the outside financial support it has been seeking. The country’s debt woes have dragged down the market off and on for nearly two months as the country tries to cut its budget and is looking for outside support.

The gains in health stocks overshadowed questions about Greece. Health stocks rose in part because the bill passed by the House will extend benefits to 32 million uninsured Americans. That means increased business for insurers and drug makers. Many of the key points of the bill will not go into effect for several years.

“You’ve got some uncertainty here lifted,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. Ablin noted, however, that other industries will face higher costs to pay for wider coverage. “What it really comes down to is that as a result of this bill health care is a beneficiary at the expense of every other sector.”

 

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