The outlook on Wall Street has run both hot and cold since Congressional Republicans failed last week in their attempt to repeal and replace the Affordable Care Act. Stocks in general opened lower on Monday, while stocks of hospital companies soared.
The overall outlook proved shaky as the week began, with Reuters reporting that President Trump's failed healthcare bill fostered doubt over his ability to enact an agenda that prioritizes tax cuts and deregulation.
The dollar had been strong when tax cuts and higher infrastructure spending seemed a surer bet, but it's now at its lowest level since the first few days after the election. Gold prices have hit a monthlong high, and banks were also down. Trump's refocusing on tax cuts appeared to keep losses in futures mostly in check.
In analyzing the American Health Care Act, the GOP's answer to the ACA, the nonpartisan Congressional Budget Office projected that 24 million Americans would lose coverage by 2026, 14 million of them over the next couple of years.
With healthcare reform efforts now on hold, however, stock in companies such as Tenet Healthcare, HCA Holdings, Universal Health Services and Community Health Systems saw healthy gains, Forbes reported.
Stocks of publicly traded hospital companies had been doing poorly to that point, and struggled even more when the CBO released its projections. But as news of the AHCA's failure began to spread, HCA stock rose nearly 4 percent, Tenet rose 7 percent and Universal Health Services rose 3 percent.
Hospitals have been enjoying some of their best years financially, thanks in part to the ACA's broader coverage and the expansion of Medicaid, which has reduced exposure to bad debt and charity care expenses from the uninsured.
Twitter: @JELagasse