Stock market: Health companies pull stocks higher
NEW YORK (AP) —
Health stocks lifted the market Monday following House approval of an overhaul bill that would extend insurance to millions.
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 drugmakers.
ON POLITICS:Latest on health care
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.
Questions about Greece arose again when Germany's chancellor said Sunday that a bailout for Greece won't be discussed at a European summit this week. Greece has said in recent days if other European countries do not provide support, it might turn to the International Monetary Fund for help.
Investors have been worried that Greece and other European nations that use the euro, like Spain and Portugal, could struggle to recover as they try to pay down steep debt. That could upend a global economic recovery.
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."
Bond prices rose, pushing down yields. The yield on the benchmark 10-year Treasury note fell to 3.67% from 3.70% late Friday.
The dollar was mixed against other major currencies. Gold fell.
Crude oil rose 57 cents to $81.25 per barrel on the New York Mercantile Exchange.
Major stock indexes fell Friday because of renewed concerns about Greece. The Dow fell 0.3%, while the S&P 500 index dropped 0.5%.
News from retailers was mixed but signaled that affluent consumers are stepping up spending. Jeweler Tiffany's fourth-quarter profit quadrupled but earnings fell short of analysts' forecasts.
Williams-Sonoma said increased revenue boosted profits by more than sevenfold from a year ago, when one-time costs dented results. The seller of kitchen goods forecast stronger results for its current fiscal quarter.
The improvement in sales is a welcome sign for the economy as the end of the January-March quarter approaches.
Richard Cripps, chief market strategist for Stifel Nicolaus in Baltimore, is encouraged that expectations are growing for first-quarter profits. Corporate earnings are the biggest driver of the stock market.
"More analysts than not are choosing to increase their estimates and that's a good thing," Cripps said.
Britain's FTSE 100 fell 0.1%, Germany's DAX index and France's CAC-40 rose 0.1%. Japan's Nikkei was closed for a holiday.
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