A look at the ripples from the Supreme Court decision
How will Wall Street take this? After the June 28 ruling, stocks of key managed care companies fell while hospital stocks and Medicaid-related stocks rallied. Was this a reaction confined to a market day, or an indicator? Opinions differ.
In the view of Leerink Swann health care analyst Jason Gurda, the high court ruling was “largely a neutral” financially and “what the market has mostly expected for the last two years.” Barry Knapp, head of equity strategy at Barclays Capital, called the Supreme Court’s decision “a pretty clear negative” that would weigh on business confidence and therefore the markets. Charles Boorady, a top health-care analyst for Credit Suisse, saw an upside: “As a country, we’re going to spend about $2 trillion more on health care with this law and that’s all money coming into [that sector], which will ultimately be good for the managed health care stocks.”
Right now, the market has plenty of things on its mind (European debt issues, job creation, China’s economic health, and our November elections) and the impact of this ruling might fall far down the list.