Stock Futures Point Higher as Healthcare Climbs Ahead of Senate Vote

New York (June 26)  Stock futures were higher on Monday, June 26, as healthcare names rose ahead of an expected vote on the GOP's Obamacare replacement later in the week.

S&P 500 futures were up 0.26%, Dow Jones Industrial Average futures gained 0.3%, and Nasdaq futures added 0.4%.

Senate House Majority Leader Mitch McConnell is pushing for a vote on the Senate's bill in the coming week. McConnell hopes to have votes cast before Congress goes on its July 4 recess.

The Senate bill, which was made public on Thursday, June 22, suggests deep cuts to Medicaid and allows states the option to drop benefits coverage, including maternity care and mental health care. Details of the plan have been worked out in secret with no public hearings nor amendments from across the aisle.

The Congressional Budget Office will release its rating on the Senate Republicans' healthcare bill in the coming week. The CBO rating could be released as early as Monday. The Senate GOP's plan is seen as similar to the House GOP's American Health Care Act, though many have criticized the bill for being even harsher. A number of Republicans have openly criticized the bill, including Sen. Ron Johnson (R-Wis.) and Sen. Dean Heller (R-Nev.).

The CBO found that the House's bill would leave 23 million more Americans uninsured in exchange for a $119 billion reduction in the deficit over 10 years and nearly $800 billion in tax cuts that would overwhelmingly benefit the rich. The Tax Policy Center estimated a $37,000 average annual tax cut would go to the highest 1% of earners, and the top 0.1% would get a $200,000 tax cut.

The healthcare sector had one of its best weekly performances last week since early November 2016. The sector rallied on Wednesday, June 21, and Thursday, June 22, on hopes that the Senate GOP healthcare bill and relaxed regulations from the Trump White House would benefit drugmakers.
Healthcare shares continued to climb in premarket trading Monday. The Health Care Select Sector SPDR ETF (XLV) increased 0.16%, while the iShares NASDAQ Biotechnology Index (IBB) gained 0.7%. 

Source: TheStreet