Shares of health-care companies fell as traders hedged their bets on the outlook for health-insurance and tax legislation. One brokerage said President Donald Trump's tax-reform promise could be fulfilled sooner rather than later, and that the health care sector could be a big beneficiary. "While 2018 may have some tax benefit baked into consensus bottom-up estimates, it has (appropriately) not been fully adjusted or discounted," said analysts at brokerage Morgan Stanley, in a note to clients. "Our confidence level in tax reform/cuts has risen with the administration's demonstrated political success around ACA repeal and replace; and the prospect of tax reform should disproportionately benefit energy, tech, healthcare, telecom and small cap stocks." Another strategist said the implications of the health-care bill are less clear for tax reform. "The passage of the American Health Care Act in the House of Representatives is both good and bad news for tax reform," said Bob Doll, chief investment strategist at money manager Nuveen Investments. "It shows Republicans are capable of coming together on complex legislation, but it means the health care debate will likely to go on for some time and tax legislation will be pushed back." Drug-testing and research firm Parexel International is exploring a sale, The Wall Street Journal reported.
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(END) Dow Jones Newswires
May 08, 2017 16:28 ET (20:28 GMT)