NEW YORK — Drug and hospital companies led stocks higher Monday after House lawmakers ended months of uncertainty and approved the health care overhaul bill.
The Dow Jones industrial average rose about 44 points. Broader indexes also climbed.
Investors had expected the bill would pass the House, and with the vote Sunday, “you’ve got some uncertainty here lifted,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
A bill with House changes was sent to the Senate, where debate could begin today.
The 10-year, $938 billion bill will extend benefits to 32 million uninsured Americans. That will have far-reaching effects on health companies. Investors are placing bets on winners and losers. Hospital stocks rose on expectations they would see more business. Some insurers fell because of restrictions in the bill.
Many key points will not take effect for several years, though others, like provisions allowing children to remain on their parents’ insurance until age 26, will kick in this year.
Hospital operator Tenet Healthcare Corp. rose 9 percent. Insurer UnitedHealth Group Inc. fell 3.2 percent.
The Dow rose 43.91, 0.4 percent, to 10,785.89. It has risen in 14 of the past 17 trading days and stands at its highest level since October 2008.
The Standard & Poor’s 500 index rose 5.91, 0.5 percent, to 1,165.81. The Nasdaq composite index rose 20.99, 0.9 percent, to 2,395.40.
