After President Donald Trump made announcements at a speech of his long and awaited plans to lower the cost of drug prescriptions in America, stocks saw a soar in healthcare.
“American Patients First”
After unveiling his plans of lowering the costs of prescription drugs in The United States called “American Patients First”, reports CNBC, the President has repeatedly expressed his opposition of pharmaceutical and drug companies across the United States, even stating and accusing companies of “getting away with murder”, many of them saw deep drops in their stocks.
Statements made by the President were that “Everyone involved in the broken system — the drugmakers, insurance companies, distributions, pharmacy-benefit managers and many others — contribute to the problem,” also adding that “Government has also been part of the problem because previous leaders turned a blind eye to this incredible abuse.”
Once announcements of the healthcare plans were made, markets saw a surge in stock with Merck & Co bounced up 2.8 percent while Pfizer as well as Johnson & Johnson each jumped above 1 percent.
Chief executive officer of Longbow Asset Management, Jake Dollarhide, located in Tulsa, Oklahoma said: “They’ve walked the tightrope between cost savings for the American people and maximizing profits for publicly traded healthcare stocks.” Apple has also seen a 0.38 percent, reports The New York Times, as they bordered along $1 trillion marker, weighing down on the technology sector.
Keith Lerner, the chief market strategist at SunTrust Advisory Services, said: “Tech is giving back some of its gains. Market participants are not making aggressive bets after the week we’ve had, heading into the weekend,” and that “We’re in a holding pattern today, digesting the strong gains of the week.” Reported by Thomson Reuters Datastream, the S&P 500 is currently trading at 16 times expected earnings which is its lowest double digit over the last two years.