Shocker! Supreme Court Ruling Jolts Markets
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Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 7.6%
Revenue Growth %: +1.0%
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It has been a wild day for stocks in the health care sector as the Supreme Court's decision on the health care mandate was announced. The day began with reports of belly-dancers performing on the steps of the court house, but this proved to be the least surprising aspect of the morning, as the court's decision was the real shocker - the individual mandate was ruled constitutional . . . but not right way.
First, CNN said it wasn't, stocks jumped. Streetinsider.com reporters said . . . wait, wait it was constitutional. More swings. Mind you, by this time many stocks in the sector had been halted - a trend that would continue throughout the morning, as reporters here nearly pulled their hair out trying to keep up with all the announcements. Here are a few highlights:
Healthcare providers trading halted for volatility: Coventry Health (NYSE: CYH), Tenent Health (NYSE: THC), WellPoint (NYSE: WLP), HCA Holdings (NYSE: HCA) . . .WLP resumed trading, down 2.8% . . .HMA resumed trading, up 8.5% . . .THC resumed trading, up 3.45%,. . .CYH resumed trading, up 9% . . .THC halted again on circuit breaker . . . THC resumes up 10 % . . . CYH halted . . . resumes up by 8 %. . . . halt . . . resume . . . halt., etc., etc.
The court ruling was a clear victory for Obama, but it wasn't all good news. The court also ruled that part of the law that required expansion of Medicaid violates states' right.
In general, the market reaction to the combined rulings, both the individual health mandate and the Medicaid expansion, was positive for hospitals (NYSE: HCA) (NYSE: THC) (NYSE: CYH) and negative for big insurers (NYSE: WLP) and (NYSE: AET).
Home healthcare companies saw a negative reaction to the ruling. Amedisys Inc. (Nasdaq: AMED) fell nearly 12 percent, while Almost Family Inc. (Nasdaq: AFAM) fell over 6 percent.
But the story is not over. Analysts covering stocks in this sector are predicting volatility for health stocks going into the elections, as fears loom that a Republican victory in November will result in the law being repealed.
For the record, odds makers at Intrade predict that there is a 55 percent chance Obama will be re-elected. So . . . here we go again.
First, CNN said it wasn't, stocks jumped. Streetinsider.com reporters said . . . wait, wait it was constitutional. More swings. Mind you, by this time many stocks in the sector had been halted - a trend that would continue throughout the morning, as reporters here nearly pulled their hair out trying to keep up with all the announcements. Here are a few highlights:
Healthcare providers trading halted for volatility: Coventry Health (NYSE: CYH), Tenent Health (NYSE: THC), WellPoint (NYSE: WLP), HCA Holdings (NYSE: HCA) . . .WLP resumed trading, down 2.8% . . .HMA resumed trading, up 8.5% . . .THC resumed trading, up 3.45%,. . .CYH resumed trading, up 9% . . .THC halted again on circuit breaker . . . THC resumes up 10 % . . . CYH halted . . . resumes up by 8 %. . . . halt . . . resume . . . halt., etc., etc.
The court ruling was a clear victory for Obama, but it wasn't all good news. The court also ruled that part of the law that required expansion of Medicaid violates states' right.
In general, the market reaction to the combined rulings, both the individual health mandate and the Medicaid expansion, was positive for hospitals (NYSE: HCA) (NYSE: THC) (NYSE: CYH) and negative for big insurers (NYSE: WLP) and (NYSE: AET).
Home healthcare companies saw a negative reaction to the ruling. Amedisys Inc. (Nasdaq: AMED) fell nearly 12 percent, while Almost Family Inc. (Nasdaq: AFAM) fell over 6 percent.
But the story is not over. Analysts covering stocks in this sector are predicting volatility for health stocks going into the elections, as fears loom that a Republican victory in November will result in the law being repealed.
For the record, odds makers at Intrade predict that there is a 55 percent chance Obama will be re-elected. So . . . here we go again.
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