Losses for drugmakers, hospitals pull stocks lower

Associated Press

NEW YORK

U.S. stocks declined for the third time in four days Tuesday as health care companies took center stage.

Drugmakers fell after President Donald Trump said he wants to bring drug prices down. Insurers rose and hospital companies dropped after Republicans in Congress introduced a bill intended to replace the 2010 Affordable Care Act.

Pharmaceutical and biotechnology companies fell after Trump said in a morning tweet that he intends to bring down drug prices. The health care proposal gave big health insurers a boost, but hurt companies that do a lot of business with Medicaid.

It’s not clear if the bill will pass the Senate, as several Republicans have already questioned it. Stocks turned lower at the end of the day as that criticism increased, leaving the fate of the current bill, a key part of Trump’s agenda, uncertain.

“We’re going to still be having this conversation six months from now,” said Les Funtleyder, health care portfolio manager for E Squared Asset Management.

Elsewhere, energy companies continued to slip and technology companies made smallish gains. Stocks hadn’t fallen for two-consecutive days since the end of January and set their latest record highs last Wednesday.

On Thursday, the current bull market will turn 8 years old. It’s lasted longer than any other since World War II except for the decade-long run that ended in early 2000.

Since the middle of 2015, drug companies have repeatedly tumbled as investors worried that the government would take action to reduce prices or at least curb price increases. While Trump has talked about dealing with the issue before, he has never discussed details.