Tuesday, December 22, 2009

Insurance companies the big winners in Obamacare.

No wonder the liberals are up in arms.

Healthcare stocks rose after a bill to overhaul the U.S. healthcare system, which is perceived as less damaging to industry profits than expected, passed a crucial test in the U.S. Senate early Monday.

Retail stocks also gained as investors were optimistic about the rest of the holiday shopping season even after a heavy snowstorm hit the East Coast over the weekend, which may have deprived retailers of profits.

Legislation to overhaul the U.S. healthcare system passed a crucial test early Monday as backers cleared a procedural hurdle to approving the bill, which is President Barack Obama's top legislative priority.

Following the vote, the Morgan Stanley Health Payor index climbed 3 percent. Health insurers Aetna Inc added 4.7 percent to $34.04 and Cigna Corp rose 3.9 percent to $37.19.

"When it comes to healthcare, as it is with any industry, it's more about certainty," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co. in San Francisco. "That way you know who the winners and losers are."

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