Many health care stocks jump after Trumpcare derails
The stock prices of many publicly traded health care companies soared in the aftermath of Trumpcare's death, while the rest of the market lagged behind. Hospitals and Medicaid-based health insurers fared the best, since the GOP plan would have increased the number of uninsured people and scaled back the Medicaid expansion.
The biggest winners: Hospital companies Community Health Systems, HCA and Tenet Healthcare all gained at least 6% since last Friday's market open. Centene and Molina Healthcare, two of the largest Medicaid insurers in the country, each jumped 7% since last Friday.
Meh for the rest: Investors sold off or didn't touch the stocks of pharmaceutical companies, medical device makers and the big health insurers. Humana's stock price tumbled 3%. Corporate tax reform would greatly benefit those health care sectors, especially insurers, since all of their profits are earned in the United States. But that looks increasingly unlikely now that health care reform has failed.