The stock markets in the United States declined again today as investors continue to monitor for development of the debt negotiations between Greece and its international creditors.
The equities of healthcare companies rallied following a key decision of the Supreme Court saved the Affordable Care Act popularly known as the Obama Care.
The Supreme Court upheld that the Affordable Care Act authorize federal tax credits for eligible Americans living not only in states with their own exchanges but also in the 34 states with federal exchanges. The 6-3 decision of the court is the major wind for the Obama administration.
Chief Justice John Roberts wrote in the majority opinion of the Supreme Court that the “Congress passed the Affordable Care Act to improve health markets, not to destroy them. If at all possible, we must interpret the Act in a way that is consistent with the former, and avoids the latter.”
President Barack Obama said, “Five years ago, after nearly a century of talk, decades of trying, a year of bipartisan debate, we finally declared that in America, healthcare is not a privilege for a few but a right for all. The Affordable Care Act is here to stay.”
On the other hand, Greece and the finance ministers in the European region haven’t reach a financial aid agreement. The EU finance ministers will hold a two-day summit later today on the situation.
Germany’s Finance Ministry Spokesman Martin Jaeger recently stated that they already made exceptionally generous compromises during the debt talks and it now Greece’s turn to make a move to resolve the deadlock.
The EU finance ministers rejected some of the economic measures proposed by Greece including the extra charge on company profits, a tax on electronic gaming, and an increase in employer contributions.
Commenting on the market trends, , Joe Bell, a senior equity analyst at Schaeffer’s Investment Research told Bloomberg, “The daily movements right now continue to be relative to any positive or negative news related to the Greek talks. I’m not sure anybody knows the financial impact, but I’d guess it’s priced in to some extent. There’s just uncertainty on what that means.”
Meanwhile, data showed that the consumer spending in the United States increased last months due to income gains as the labor market continues to improve.
The Department of Labor reported that the number of people who applied for unemployment benefits were 271,000. Economist considered the figure as a level consistent with the labor market improvement.
- Dow Jones Industrial Average (DJIA) – 17,890.36 (-0.42%)
- S&P 500- 2,102.31 (-0.30%)
- NASDAQ- 5,112.19 (-0.20%)
- Russell 2000- 1,283.43 (-0.04%)
- EURO STOXX 50 Price EUR- 3,610.91 (-0.00%)
- FTSE 100 Index- 6,807.82 (-0.54%)
- Deutsche Borse AG German Stock Index DAX- 11,473.13 (+0.02%)
- Nikkei 225- 20,771.40 (-0.46%)
- Hong Kong Hang Seng Index- 27,145.75 (-0.85%)
- Shanghai Shenzhen CSI 300 Index- 4,706.52 (-3.56%)
Stocks in Focus
The stock price of Netflix declined more than 2% to $664.43 per share after brokerage firms downgraded their rating on the stock. Societe Generale analysts cut their rating Sell from Buy citing the reason that Netflix is now “priced for perfection.”
The shares of Cree declined almost 10% to $27.51 per share. The market leader in LED lighting announced that its decision to restructure its LED product business. Cree also issued a lower than expected revenue guidance for the fourth quarter.
Tenet Healthcare surged more than 12% to $56.21 per share driven primarily by the Supreme Court ruling on the Affordable care Act.