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Shares of health insurers and hospitals were rising Tuesday as investors began to bet on a divided government after the elections — but that wasn't enough to help some battered biotech and pharmaceutical stocks.
"In general, health care is benefiting from the prospects of a divided government, which I think is a good probability at the moment," said Mike Bailey, director of research and chair at FBB Capital Partners. He said certain "pockets of weakness" were due more to company-specific news.
Divided government "at a minimum slows down any high-profile political moves or plans to control that sector, whether it's drug controls or insurance controls, giving health care a bit of a bid today," Bailey said.
