Henry Vilas wrote:After the uncertainty over health care reform has been resolved, the DOW is up 270 plus.
I'm pretty sure most of the market's gains were related to the good economic news from Europe
, but if you wanted to see movement in response to the ACA ruling, I'd look at Walgreen's, Wal-Mart, McDonald's and health insurance stocks. Walgreen's will likely get a boost from more health insurance coverage, huge employers who typically pay low wages with poor benefits like Wal-Mart and McDonald's will likely take a hit and health insurance companies will almost surely take a hit due to shrinking dividends. It's hard to say how much of the ACA has already been factored into their stock prices, though.
On a side note, I wonder whether the ACA ruling may be a blessing for companies like Wal-Mart, who will obviously see an increase in their insurance costs but may be in a better position to weather that storm than struggling competitors like Shopko. Domino's and Pizza Hut probably feel the pinch from competitors like Little Caesar's, but can you afford added health care costs if you're selling your pizzas for $5 each? Strange as it may seem, the ACA may have an immediate impact on things like dollar menus. If you're in a highly competitive industry with razor thin margins, you can't really absorb the costs... you have to pass them on.