Election Impact: Health Care Stocks Jump Following Midterms
Health insurers rose sharply Wednesday as investors anticipated that any prospects of repealing the Affordable Care Act, which expanded health insurance to millions of Americans, diminished greatly now that Democrats control the House of Representatives.
Marijuana companies soared after several states voted to partly legalize pot, oil and gas companies benefited from the defeat of a ballot measure in
Here’s a look at industries and companies that were affected in various ways by the outcome of the election.
HEALTH CARE: Health insurers, hospital operators and companies that run Medicaid health programs all jumped. Democrats’ victory in the House means Republicans won’t be able to pass legislation repealing the 2010 Affordable Care Act, a goal for the party ever since the law was passed during President Barack Obama’s first term. The bill expanded health insurance coverage, and the election results mean more stability for insurers and more reimbursement for hospitals.
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MARIJUANA STOCKS: Voters in
DIALYSIS DETAILS: Dialysis services company DaVita surged after
DaVita gained 10.7 percent to $76.67.
FRACKING FALLOUT: Oil drillers
Anadarko gained 5.9 percent to $57.98 and Noble picked up 5.4 percent to $28.50.
BANKS LAG: Interest rates headed lower, which limited the gains for financial companies. Republicans had discussed the possibility of more tax cuts, which would have resulted in the government issuing more debt. If those cuts led to faster economic growth, they also could have pushed the Federal Reserve to increase interest rates at a faster pace. Higher rates are good for banks because they make more from lending money to customers.
The yield on the 10-year Treasury note went as high as 3.25 percent Tuesday night from 3.21 earlier in the day. On Wednesday it dipped to 3.20 percent.