Wall Street rises on corporate outlooks; insurers gain

[Joanne98]

Source: Reuters


NEW YORK (Reuters) - Stocks rose on Thursday on brighter outlooks from Texas Instruments and Procter & Gamble that prompted investors to push market gains into a fifth straight session.

Procter & Gamble Co (NYSE:PG - News) was the Dow's biggest lift, gaining 4 percent to $55.93 after it affirmed its earnings forecast for the current quarter and said sales would improve in the next quarter.

The potential for rising sales was encouraging for investors, who fear anemic consumer spending could stall a burgeoning recovery.

Optimism was tempered by a 5.4 percent drop for Monsanto (NYSE:MON - News) after the world's biggest seed company forecast fiscal 2010 earnings below Wall Street's estimates. Monsanto dragged the S&P materials index (^GSPM - News) down 0.6 percent.

"Investors are waiting for an assessment on what type of recovery it is," said Alan Lancz, president of Alan B. Lancz & Associates Inc in Toledo, Ohio.

"I do think if the market continues its rally into the fourth quarter, that we're borrowing gains from 2010 from the standpoint it will be reflecting a v-shaped recovery, and any disappointment there will hurt."

If the gains hold, it would mean a fifth day of advances that would push the S&P 500 index to its highest level in nearly a year.

The Dow Jones industrial average (DJI:^DJI - News) gained 25.24 points, or 0.26 percent, to 9,572.46. The Standard & Poor's 500 Index (^SPX - News) added 2.88 points, or 0.28 percent, to 1,036.25. The Nasdaq Composite Index (Nasdaq:^IXIC - News) rose 7.84 points, or 0.38 percent, to 2,068.23.

Health insurance stocks (AMEX:^HMO - News) rose 1.5 percent after President Barack Obama played down the importance of a government-run option in a speech on Wednesday, a sign elements of the plan may be altered to soothe opponents. Critics say reforms will be expensive and could distort the existing market.

Cheaper, watered-down U.S. healthcare reform could help provide the next leg up for equity markets, said Linda Duessel, market strategist at Federated Investors in Pittsburgh.

"It will be very expensive as it stands right now," said Duessel. "To the extent that it comes down a little bit, the market should like that. If for whatever reason they wouldn't be able to come up with any conclusion here and it fails, the market might really like that."

Aetna Inc (NYSE:AET - News) rose 1.2 percent to $29.60 and WellPoint Inc (NYSE:WLP - News) was up 1.1 percent at $53.43.


Read more: http://finance.yahoo.com/news/Wall-Street-rises-on-rb-1529880347.html?x=0&.v=9&.pf=banking-budgeting&mod=pf-banking-budgeting

[DJ13]

1. "... watered-down U.S. healthcare reform ..."

So why are people here recommending this article?

Thats NOT good news folks.

[SandWalker1984]

2. Wall Street heard what I heard in last night's speech - real reform is DOA

I listened very carefully to the president and took notes on some major points. I came away with the following:

MANDATED insurance -- if the public option gets gutted or tossed out, everyone will be required by law to buy PRIVATE, EXPENSIVE, CORPORATE INSURANCE or pay fines. To me, this is selling us into corporate slavery. Especially as I heard nothing about regulating or capping premiums.

Denying coverage because of pre-existing conditions would be illegal. But I heard nothing about regulating or capping the premiums the insurance corporations can charge these people.

Apparently raising the taxes on the very rich to help pay for this plan has been tossed in the garbage as it was not mentioned.

The public option, as described tonight, is dead on arrival. Obama killed it. You cannot have a viable, competitive public option if you (1) refuse to help subsidize it to get it started, (2) state no one can join the public option except people currently without insurance and (3) you give subsidies in the "exchange" ie Cooperative for people to buy PRIVATE insurance. The rates in the public option will end up being so high it cannot provide adequate competition to private plans. That is exactly what the corporations want.

As a long time Democrat I thought I would never be saying this---- if the final "reform" bill turns into a big giveaway to the insurance corporations, if the bill contains mandates to purchase insurance but no Medicare type public option --- I will be joining the Republicans to defeat the bill.

I expected better than this from the Democrats.







.

[tridim]

4. You're making stuff up in your head. Why?

IMO you watched the speech, got scared and came to DU to spread your lies.

Nothing you said is true.

[Hugin]

6. Well, IMHO... If not any member of the public can join the public option.

Then it's not really... Public. Is it?

"no one can join the public option except people currently without insurance"

[readmoreoften]

3. That about says it all. The market is happy with Obama's plan. That means real people

just got screwed.

[WestSeattle2]

8. Exactly. If insurance stocks go up, you can bet that we're

average citizens are getting hosed. What's good for the insurance industry is not good for Americans.

[Desertrose]

9. "What's good for the insurance industry is not good for Americans."

Yup. What you said.


Not good news,peeps.

[Lorien]

5. More corporate welfare. Just another way to rob from the poor to

line the pockets of the rich.

[fascisthunter]

7. what a surprise