Posted by
alfredlester on Monday, March 22, 2010 6:48:47 AM
LONDON (MarketWatch) -- U.S. stock futures pointed to a weaker start Monday with the insurance and pharmaceutical sectors in the spotlight as the House of Representatives passed a health reform bill, while continued jitters around Greek finances and India's rate tightening also played a role.
S&P 500 futures fell 9 points to 1,147.30 and Nasdaq 100 futures dropped 12.25 points to 1,920.00. Futures on the Dow Jones Industrial Average fell 65 points.
Major Changes Ahead As Health-Care Reform Passes
WSJ's Peter Landers details how the Obama Administration's health-care reform, which passed 219-212 in the House of Representatives Sunday night, will lead to great changes in the way millions of people find and buy health insurance.
An eight-session winning run for the Dow Jones Industrial Average had come to a halt on Friday as India unexpectedly hiked interest rates and as Palm shares plunged in the wake of a weak sales outlook. The Dow industrials fell by 37 points, the S&P 500 fell 5 points and the Nasdaq Composite dropped 16 points.
Another drop looked set as the House of Representatives voted for a health reform bill by a narrow margin. See full story.
Analysts at U.K. broker Panmure Gordon, who follow AstraZeneca and GlaxoSmithKline , estimate the bill will cut earnings per share by 1 personal loan for poor credit.5% to 2.2% each year for the first five years of the bill's enactment. But they recommend buying both, noting attractive valuations and dividend yields.
Besides health-related stocks, Greece also was a focus as German Chancellor Angela Merkel told a radio station that markets shouldn't expect a Greek aid package when European leaders gather later this week. The euro weakened vs. the dollar, and Greek bonds widened relative to German ones.
Williams-Sonoma and Tiffany & Co. headline Monday's set of earnings reports. Data Explorers reports that the percentage of Tiffany stock on loan has doubled over the last month to 5%.
Credit Suisse dropped over 2% after restricting banker travel to Germany, following an investigation by the country into 1,100 customers and staff. See story.
Asian stocks dropped in their first opportunity to react to the Indian rate hike news, and Europe stocks dropped for the third straight session. See Asian markets.
Oil futures fell below $80 a barrel, and metals contracts also declined.
Indications: U.S. stock futures point to weaker start