U.S. stocks relapse as health-care sector weighs

[Pirate Smile]

Source: Marketwatch

By Peter McKay, MarketWatch
NEW YORK (MarketWatch) -- Stocks faltered Wednesday, hurt by weakness in the health-care sector fueled by unpromising test results for a new Alzheimer's drug and a new call by President Obama to pass federal health-care legislation.
The market rallied through most of the session, aided by favorable readings of jobs, service-sector activity, and the Federal Reserve's beige book of regional indicators. But the gains dried up late in the session.

-snip-
Health insurers clung to gains after the speech but a number of drug distributors lost ground after Obama proposed elimination of "wasteful" subsidies of pharmaceutical companies. See Health-Care Stocks.
Obama said he is seeking to push the "long and wrenching debate" over health care into its final stages and asked lawmakers to schedule a vote on overhaul legislation "in the next few weeks."

Health-care stocks have been sensitive to the possibility that any possible changes enacted in Washington might cut into private providers' profits. The sector picked up a bit in mid-January when Republicans picked up a 41st seat in the Senate -- a development that was thought by many to dim the prospects of passage of a health bill. But on Wednesday, investors had to reconsider the possibility that a bill might get through after all.

"A lot of the legislative news has already been priced into these stocks, so they're not exactly getting killed," said Todd Leone, head trader at Cowen & Co. "But at the same time, passage of any bill would be a negative for the sector if and when it happens. I think we're looking at about a 50-50 possibility of that at this point."

Read more: http://www.marketwatch.com/story/us-shares-open-higher-2010-03-03

[xchrom]

1. This is their bill -- so why so sensitive? Nt

[DJ13]

2. The stock market has a long held tradition

Doing exactly the opposite of what you expect.

The big investment houses make their money by betting against the grain.

[global1]

3. With 30+ Million New People Getting Health Insurance The.....

pharmaceutical and medical device companies are going to see a windfall of new business. I don't know why the apprehension.

[Puppyjive]

4. Wall Street Speculators will put an end to the US

I think this is bullshit. This is just another reason why we need a public option. I'm sick of Wall Steets games. We should be investing in our country, not some Wall Street Execs pocket.

[SlingBlade]

5. Harry ...Won't be go'in down to WallStreet in the Morn'in