Health Care Stocks Soar As Threat To Health Law Fades With Democrats’ House Victory
Analysts have called a split Congress the best case scenario for the marketplace. “We expect to see legislative deadlock for the next two years, with an uptick in House hearings and political posturing while President Trump continues to push his agenda through executive action and the judiciary,” Leerink analyst Ana Gupte said.
Reuters:
Health Stocks Up On U.S. Vote; Insurers Hit Records
Shares in drugmakers and U.S. health insurers rallied on Wednesday, after election results delivered a split Congress that is unlikely to significantly cut government healthcare programs or reduce drug prices in the world's biggest and most profitable market. Republicans lost control of the House of Representatives to the Democrats in Tuesday's elections, a setback for President Donald Trump, but increased their grip on the Senate, signaling likely policy gridlock in Washington. (11/7)
The Associated Press:
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 Colorado that might have restricted drilling, and a dialysis services company rocketed higher after California voters rejected a measure that would have capped the profits of dialysis clinics. (11/7)
The Wall Street Journal:
New Winners And Losers Emerge In Stock Market After Midterms
The future looks brighter for many health-care stocks following the 2018 election, as the likelihood of rolling back the Affordable Care Act diminished following the Democrats winning the House. Insurers and hospital stocks rose, with UnitedHealth Group Inc. UNH 4.21% up 4.2%, Anthem Inc. ANTM 6.59% up 6.6% and Cigna Corp. CI 2.82% rising nearly 3%. WellCare Health Plans Inc., which provides services to families and individuals primarily through Medicaid and Medicare, jumped 7.3%. (11/7)
Bloomberg:
Health Insurers Hit Record As Split Congress Removes Risk
“A relief rally is logical given that the other outcomes were leading to likely increased headline risk,” said Jefferies health strategist Jared Holz.(Darie, 11/7)
San Francisco Chronicle:
Dialysis Stocks Soar After California Voters Reject Prop. 8
Shares of two of the nation’s largest dialysis providers, DaVita and Fresenius Medical Care, soared Wednesday after California voters defeated Proposition 8 — a state ballot measure that sought to cap revenue for dialysis centers. DaVita’s stock jumped 10 percent, closing at $76.08 a share; Fresenius was up nearly 9 percent, closing at $43.17 a share. (Ho, 11/7)
The Wall Street Journal:
Humana Offers Positive Take On 2019
Humana offered a positive take on 2019, saying it expects that the midpoint of its initial earnings-per-share guidance will be “slightly above” analysts’ consensus projections. In the key individual Medicare Advantage business, the insurer suggested it could see growth of around 250,000 to 300,000 members, and margins will “improve nicely,” but still likely be below the long-term target of 4.5% to 5%. (Mathews, 11/7)
