MW: U.S. stock market views health care in differing light
NEW YORK (MarketWatch) -- Underscoring how it's morphed somewhat from its traditional role as a defensive play, the health-care sector was front and center in the U.S. stock market's volatile gains Friday.
Along with utilities and consumer staples, health-care stocks have been an area that investors traditionally rotate into in choppy markets.
Now, though, "smaller positions are being put into health care, with people staying on the sidelines or looking at other avenues for ports in the storm," said Brian Daly, sales trader of Conifer Securities.
The sector has been roiled of late as the Obama administration pursues health-care reform, with the president expected to flesh out his plan to overhaul the system when he addresses a joint session of Congress next week. Doubts have emerged in Washington over whether the administration's efforts will ultimately bear fruit or not.
Activity has picked up in a segment of health care -- specifically, biotechnology stocks -- on M&A takeover news and speculation, Daly said.
On Friday, information-technology and health-care shares led the gains as the major indexes remained mostly higher in up-and-down trade ahead of the long Labor Day weekend.
The Dow Jones Industrial Average (INDU 9,370, +25.39, +0.27%) stood at 9,371.74, up 27.13 points. The S&P 500 Index (SPX 1,008, +4.87, +0.49%) gained 4.02 points to 1,007.26, while the Nasdaq Composite (COMP 1,995, +12.09, +0.61%) added 11.61 points to 1,994.81.
