Dow at New 18 Month High due to Healthcare Bill

Modbert

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Sep 2, 2008
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CNNMoney.com Market Report - Mar. 22, 2010

NEW YORK (CNNMoney.com) -- Stocks gained Monday, with health care shares leading the way as Congressional approval of a sweeping reform bill removed the uncertainty that has surrounded its passage for months.

The Dow Jones industrial average (INDU) rose 44 points, or 0.4%, ending at a fresh 18-month high. The S&P 500 index (SPX) gained 6 points, or 0.5%, and closed just shy of the 18-month high hit last week. The Nasdaq composite (COMP) gained 21 points, or 0.9%, closing at a more than 18-month high.

Stocks fell in the first minutes of the session on renewed questions about Greece's ability to repay its debt. But the market soon erased losses and turned higher as investors began snapping up biotech, health care provider and hospital sector stocks in the wake of the House of Representatives' approval of the health care bill.

Many of those stocks have been stuck in narrow trading ranges over the last year amid questions about the breadth of any bill and whether or not Congress would approve it. But the removal of that uncertainty seemed to help lift the stocks beyond those ranges.

"The bill is being received well so far, but we have to see what comes out of it down the road," said Stephen Carl, head equity trader at Williams Capital Group.

Health care stock movers: Hospital operators advanced, as they are seen benefiting from the increased number of customers. Tenet Healthcare (THC, Fortune 500) gained 9% and Community Health Systems (CYH, Fortune 500) rallied 6%

Thoughts USMB?
 
CNNMoney.com Market Report - Mar. 22, 2010

NEW YORK (CNNMoney.com) -- Stocks gained Monday, with health care shares leading the way as Congressional approval of a sweeping reform bill removed the uncertainty that has surrounded its passage for months.

The Dow Jones industrial average (INDU) rose 44 points, or 0.4%, ending at a fresh 18-month high. The S&P 500 index (SPX) gained 6 points, or 0.5%, and closed just shy of the 18-month high hit last week. The Nasdaq composite (COMP) gained 21 points, or 0.9%, closing at a more than 18-month high.

Stocks fell in the first minutes of the session on renewed questions about Greece's ability to repay its debt. But the market soon erased losses and turned higher as investors began snapping up biotech, health care provider and hospital sector stocks in the wake of the House of Representatives' approval of the health care bill.

Many of those stocks have been stuck in narrow trading ranges over the last year amid questions about the breadth of any bill and whether or not Congress would approve it. But the removal of that uncertainty seemed to help lift the stocks beyond those ranges.

"The bill is being received well so far, but we have to see what comes out of it down the road," said Stephen Carl, head equity trader at Williams Capital Group.

Health care stock movers: Hospital operators advanced, as they are seen benefiting from the increased number of customers. Tenet Healthcare (THC, Fortune 500) gained 9% and Community Health Systems (CYH, Fortune 500) rallied 6%

Thoughts USMB?

Yes- Dogbert, it's because you are finally going to be FORCED into buying your own health insurance plan. Health care is not free as most of you libs believed it was.:lol::lol: now you gonna pay for it.:lol::lol:
 
Tried to explain that the Insurance Companies and Big Pharma were the only real winners.


Live and learn.

Explain to us how chris is creaming in his pants over this bill but at the same time loathes big pharma and insurance companies.
 
As I posted earlier today:

http://www.usmessageboard.com/healt...are/110157-it-just-passed-14.html#post2124054

That's not how I see it playing out. There are currently 1,300 health insurance companies across the U.S. Only 6 are allowed to "compete" in CA. CA has a very active insurance commissioner which provides a preview of Federal Coming Attractions.

The largest most well connected insurance companies will use the Federal Government to regulate out of existence the smaller, more cost effective competitors. Then these Large Behemoth Crony Companies, with the help of those who regulate them, will split up the U.S. into their protected territories, turning themselves into virtual public utilities.

They will collude with government to set a targets for profits and return on capital on a cost plus basis. The point will be to maintain the cost structure in order to generate predictable profits.

They will keep the cost of providing services to individuals under control by using regulators to periodically define down the standard of care so that they can keep a constant ratio of revenue to costs - leading to less service, longer wait times, and de facto rationing.


Of course the stock for large insurance companies is going to go up right now - they are going to get guaranteed profits from taxpayers.
 
CNNMoney.com Market Report - Mar. 22, 2010

NEW YORK (CNNMoney.com) -- Stocks gained Monday, with health care shares leading the way as Congressional approval of a sweeping reform bill removed the uncertainty that has surrounded its passage for months.

The Dow Jones industrial average (INDU) rose 44 points, or 0.4%, ending at a fresh 18-month high. The S&P 500 index (SPX) gained 6 points, or 0.5%, and closed just shy of the 18-month high hit last week. The Nasdaq composite (COMP) gained 21 points, or 0.9%, closing at a more than 18-month high.

Stocks fell in the first minutes of the session on renewed questions about Greece's ability to repay its debt. But the market soon erased losses and turned higher as investors began snapping up biotech, health care provider and hospital sector stocks in the wake of the House of Representatives' approval of the health care bill.

Many of those stocks have been stuck in narrow trading ranges over the last year amid questions about the breadth of any bill and whether or not Congress would approve it. But the removal of that uncertainty seemed to help lift the stocks beyond those ranges.

"The bill is being received well so far, but we have to see what comes out of it down the road," said Stephen Carl, head equity trader at Williams Capital Group.

Health care stock movers: Hospital operators advanced, as they are seen benefiting from the increased number of customers. Tenet Healthcare (THC, Fortune 500) gained 9% and Community Health Systems (CYH, Fortune 500) rallied 6%

Thoughts USMB?

Yes- Dogbert, it's because you are finally going to be FORCED into buying your own health insurance plan. Health care is not free as most of you libs believed it was.:lol::lol: now you gonna pay for it.:lol::lol:

Hospital operators advanced, as they are seen benefiting from the increased number of customers??

:lol::lol::lol::lol:
:lol::lol::lol::lol::lol:


:lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol:
:lol::lol::lol::lol::lol:


What?

:lol::lol::lol::lol:

Is the bill going to make more people ill? Oh, no, wait, the government that already fucks hospitals with Medicare reimbursements can now fuck them with another program
 
The market opened lower, and the first headlines were "Market opens lower on health bill." When the market closed, the headlines were "Market closes higher on health bill." I wouldn't put too much stock in what the market did today.

We are in a relentless uptrend that started in February, whereby the market has been up nearly 80% of the trading days. I think that has more to do with the flood of liquidity entering the financial markets and the improving economy.
 
The market opened lower, and the first headlines were "Market opens lower on health bill." When the market closed, the headlines were "Market closes higher on health bill." I wouldn't put too much stock in what the market did today.

We are in a relentless uptrend that started in February, whereby the market has been up nearly 80% of the trading days. I think that has more to do with the flood of liquidity entering the financial markets and the improving economy.

Good point. I was hoping you'd post in this thread Toro. :lol:
 
I'm so old-fashioned that I still believe that stocks should go up based upon positive earnings.

But then again, I still think in terms of P/E's of eight or nine. Guess that is way out of date. I was told the other day that the modern investor used the projected P/E for two to three years out.

That did not make sense to me, so I figured that I was gettin' senile at age 62. There is so much that I do not know about the modern stock market.
 
The market opened lower, and the first headlines were "Market opens lower on health bill." When the market closed, the headlines were "Market closes higher on health bill." I wouldn't put too much stock in what the market did today.

We are in a relentless uptrend that started in February, whereby the market has been up nearly 80% of the trading days. I think that has more to do with the flood of liquidity entering the financial markets and the improving economy.

Gullible, aren't you. Where is the economy improving? All I see are more and more people losing their jobs. What the hell are you lookin' at?
 
Thoughts USMB?
I'd be buying stock in the companies that manufacture the hospital equipment and drugs used by the roughly 20 million soon-not-to-be-illegal immigrants, and in the agricultural firms that will benefit from the surge in free labor.

That's if I had money to invest right now. Heh.
 
The market opened lower, and the first headlines were "Market opens lower on health bill." When the market closed, the headlines were "Market closes higher on health bill." I wouldn't put too much stock in what the market did today.

We are in a relentless uptrend that started in February, whereby the market has been up nearly 80% of the trading days. I think that has more to do with the flood of liquidity entering the financial markets and the improving economy.

Gullible, aren't you. Where is the economy improving? All I see are more and more people losing their jobs. What the hell are you lookin' at?
Casflow into the market and straight edge projections of future earnings. Cashflow is simple supply and demand with more cash chasing fewer companies prices go up. The lag from unemployment getting bad enough to raid retirement accounts is taking longer with extended UE benefits. The lag from recognizing losses in receivables and other loans not to mention inability to refinance is also coming in much slower. So, it will take 0.5-2 years for this bad information to have the expected effect.
 
Seemed appropriate.

Shame on you, you know who you are, you infect your stock operation with personal political beliefs. The market doesn’t give a crap about whether you are a Democrat or Republican, it doesn’t care if you’re rich or poor, old or young. The market will eat you alive if you force your beliefs upon it. I’ve heard so many “smart” people say that passing this healthcare bill would kill the market, that it will kill our economy, that it’s a catastrophe. I hope you all sold short healthcare stocks in size this morning and are having your faces ripped off. I’ve said this for months now and I’ll say it again. It doesn’t matter whether the healthcare bill is good or bad for each individual company, the market loves when questions are answered, unknowns are done away with, when indecision is resolved. That is what you are seeing today, the market is breathing a sigh of relief, that it has new rules to work by, whatever those rules may be. In my experience as a trader I have learned that the market hates one thing above all else, not knowing the rules, traders shoot first and ask questions later when that happens.

Choke On Your Healthcare Shorts | Leigh Drogen
 
I don't think the health care bill had anything to do with it. My brother who works in a position to know says that Goldman Sachs promised that their program would run the DOW up a hundred points or more by the close because of the light trading. Now, it is this exact same machine trading that Goldman Sachs has used to run the market around that I am opposed to. I asked Obama to put a stop to it when he took office and he immediately decided to hit up Goldman for campaign support instead. Those people who know how money greases the wheel in Washington know where Obama now stands. The Bankers own him and his corrupt Chicago syndicate.
 
The market opened lower, and the first headlines were "Market opens lower on health bill." When the market closed, the headlines were "Market closes higher on health bill." I wouldn't put too much stock in what the market did today.

We are in a relentless uptrend that started in February, whereby the market has been up nearly 80% of the trading days. I think that has more to do with the flood of liquidity entering the financial markets and the improving economy.

Gullible, aren't you. Where is the economy improving? All I see are more and more people losing their jobs. What the hell are you lookin' at?
Casflow into the market and straight edge projections of future earnings. Cashflow is simple supply and demand with more cash chasing fewer companies prices go up. The lag from unemployment getting bad enough to raid retirement accounts is taking longer with extended UE benefits. The lag from recognizing losses in receivables and other loans not to mention inability to refinance is also coming in much slower. So, it will take 0.5-2 years for this bad information to have the expected effect.

Cashflow into the market? No...... How about Goldman Sachs into the market? Light trading day and a perfect one to run stocks up, which they did.
 

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