Wall Street's Verdict on Upholding the ACA

[babylonsister]

http://www.boomantribune.com/story/2012/6/29/194819/761

Wall Street's Verdict on Upholding the ACA

by Steven D
Fri Jun 29th, 2012 at 07:48:19 PM EST

The most devastating, criminal, traitorous, scheme in the history of American government (at least in the minds of Right Wingers/Teabaggers such as Sarah "I'm a White Grizzly Bear Momma" Palin, Micheal "The Only Good Negro President is a {Fill in the Blank} One!" Savage and Rush "We Shouldn't Kill All the Liberals - Yet" Limbaugh) was upheld as constitutional by the US Supreme Court yesterday. So what effect did this devastating blow to our democracy have on the barometer of all things economic, i.e., the Stock Markets?

Stocks

Dow: 12,880.09 up 277.83 points for a +2.20% gain
Nasdaq: 2,935.05 up 85.56 points for a +3.00% gain
S&P 500: 1,362.16 up 33.12 points for a +2.49% gain

I guess investors just don't see the infallible logic of the right that the health care reform law, i.e., the PPACA, will inevitably lead to tyranny, the end of Capitalism and the destruction of the American Way of Life. Must be sad day for Republicans and conservatives when even the markets refuse to follow the proper script.

[MannyGoldstein]

1. Health insurance stocks are near an all-time high

And why shouldn't they be? The ACA is basically a forced transfer of funds to them.

[nobodyspecial]

2. Yes, that's why most just fell

http://finance.yahoo.com/q?s=WLP

And I can tell you WLP is NOT at an all-time high since I personally sold it in the past at much higher numbers. Here's proof.
http://finance.yahoo.com/echarts?s=WLP+Interactive#symbol=wlp;range=2y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

[MannyGoldstein]

3. The bigger picture is more illustrative:

http://finance.yahoo.com/echarts?s=UNH#symbol=unh;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

http://finance.yahoo.com/echarts?s=WLP+Interactive#symbol=wlp;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

[nobodyspecial]

11. See that big dip in the middle?

That's when ALL stocks took a nosedive, you know, when we almost had a full-blown depression. This chart shows me that healthcare stocks are climbing back to pre-crash levels -- just like the overall stock market trend, not just health care. So, health care stocks are now reaching the same level they were in 2008 -- before the crash and before ACA was passed. Where's the windfall? I still don't see it.

[MannyGoldstein]

14. So let's compare to the S&P 500:

http://finance.yahoo.com/echarts?s=UNH#symbol=unh;range=5y;compare=^dji;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

UNH dropped more than the S&P, and earlier, perhaps on fears that there'd be meaningful health insurance reform. But it's done much better than the S&P since their respective bottoms; the S&P has doubled since its bottom, UNH has tripled.

[Aerows]

15. Fighting a lost cause

Some will see the clouds, and even if the silver lining flows into their bank accounts and those that they love, they will whine because it is blocking the sun. When the clouds go away, they whine that they sun is too bright and they need too much sunscreen. It's literally unbelievable.

[treestar]

8. They then transfer funds to doctors, hospitals, and testing clinics

For crying out loud. Insurance companies don't actually deny every claim.

And now they will be doing so for people they did not want to insure.

[Aerows]

16. You may as well bang your head against a wall

If President Obama cured cancer, there would be a contingent whining that he's reduced the profitability of pharmaceutical companies and that he is, therefore, an anti-capitalist socialist.

[ProdigalJunkMail]

4. um...that's not at all why the markets were up

at least very little of it was. almost all of that gain was due to the news of deals cut and announced in the Eurozone... you could figure that out if just just went and looked at a few commodities as well as the broader market indicators.

sP

[flamingdem]

10. DING! You are correct, this is the reason stocks were up on Friday

Europe

[pampango]

5. I thought stocks were down on Thursday after the decision was announced in the morning, then

up on Friday when the EU reached a banking deal.

[banned from Kos]

6. Srocks were down before 10am, but the ACA ruling was a surprise so if in fact

the ACA is bad for the economy then a big selloff would have been in order.

The Dow was down 100 points at 9:59am.

[AnnaLee]

7. Nope - Stocks were down on opening, little changed at 10AM

The announcement was made long after the giant fall. Both the crash on opening and the upside at the end of the day were probably Europe news. The ACA affected some related stocks (health care, insurance, etc.) but not the trend drama that occurred Thursday and Friday.

[SidDithers]

9. Insurer stocks continue to fall after ruling...

LOS ANGELES (MarketWatch) — In the wake of a landmark Supreme Court ruling that reverberated throughout the sector, commercial insurers started sliding again in Friday trading despite a broad market rally.

These insurers, which had stumbled from the shock of the court’s decision Thursday to uphold President Barack Obama’s health-care overhaul legislation, rebounded when trading opened. But as the session wore on, they slid into negative territory.

UnitedHealth Group Inc. (US:UNH) , WellPoint Inc. (US:WLP) , Aetna Inc. (US:AET) , HealthNet Inc. (US:HNT) and Coventry Health Care Inc. (US:CVH) all were down two percentage points or more. WellPoint led the losers with a 3% drop to $63.79.

http://articles.marketwatch.com/2012-06-29/markets/32467423_1_insurer-stocks-health-insurance-and-coventry-health-care

Sid

[BadgerKid]

12. Also consider: Europe's debt crisis was averted. n/t

[zoechen]

13. The EU has averted exactly nothing

The only thing that has happened is some politicians agreed on something, thats what they do.

The proof will be in the pudding.