After the Supreme Court ruling in favor of King yesterday, health care stocks surged while stocks in other industries were not so fortunate. Overall, The S&P 500 fell 0.20%, the Dow Jones Industrial Average lost 0.31%, and the NASDAQ lost 0.23%. Positive gains are still occurring in the health care sector as Bloomberg reported that Aetna was very close to acquiring Humana and Humana shares are up almost 7%.
Healthcare is increasingly becoming a very promising growth sector with healthcare stocks seeing positive gains across the board including insurance providers, Aetna and UnitedHealth. Hospital operators also saw positive results with HCA gaining 8%, Community Health rose 12%, and Tenet Healthcare went up almost 13%. The growth of the health care sector is not just a result of transformative decisions in health reform as in the recent Supreme Court decision, the major growth will spur from the fact that about 10,000 baby boomers have been turning 65 every day since 2011. Those baby boomers entering retirement are going to need health care, therefore the market opportunity is exploding every day and health care stocks will likely continue to rise.
Written by Alison Killian
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Alison Killian is a recent graduate of Grove City College who majored in Business Management and minored in Biology Studies. She is a contributor to Medical Groups and passionate about all facets of healthcare. She plans on continuing work in the healthcare field especially in management. She is very interested in healthcare innovation and finding ways to improve the current system. She hopes to go back to school in a few years to earn a degree in medicine.