The sweeping health care reform bill that passed last night is having a rejuvenating effect on the markets and exchange traded funds (ETFs). Many had feared that the opposite would happen, but so far it hasn’t materialized.
The landmark legislation passed in the House. It would give coverage to 32 million uninsured Americans, lower deficits and crack down on dubious insurance company practices such as denying or canceling coverage of people with pre-existing conditions. The bill will cost $938 billion over 10 years. Medical suppliers, pharmaceutical companies and hospitals may be the winners in this bill; anyone who provides medical care or tools for medical care could benefit from the influx of new customers. Health Care Select Sector SPDR (XLV) is up 1% this morning.
Gold has fallen to a three-week low in reaction to the dollar’s newfound strength. Ongoing worries about the debt crisis in Greece is putting pressure on the euro, giving the dollar the edge. Gold has also been hit by concerns that other emerging markets may follow India’s lead on Friday and hike interest rates. This is on top of monetary policy tightening in China, as well. iShares COMEX Gold Trust (IAU) is down 0.5% this morning.
Oil is also tumbling, dropping below $79 a barrel this morning as a result of India’s new monetary policy and Greece debt. Oil dropped sharply on Friday, as well, leading losses in other commodities. Prices are being kept at an elevated point on the strength of demand from Asia. United States Oil (USO) is up a hair at 0.2%.
Disclosure: None
No comments:
Post a Comment