Dow at 18-month high By Alexandra Twin, senior writer March 22, 2010: 6:36 PM ET
NEW YORK (CNNMoney.com) -- Stocks gained Monday, with health care shares leading the way as Congressional approval of a sweeping reform bill removed the uncertainty that has surrounded its passage for months. The Dow Jones industrial average (INDU) rose 44 points, or 0.4%, ending at a fresh 18-month high. The S&P 500 index (SPX) gained 6 points, or 0.5%, and closed just shy of the 18-month high hit last week. The Nasdaq composite (COMP) gained 21 points, or 0.9%, closing at a more than 18-month high. Stocks fell in the first minutes of the session on renewed questions about Greece's ability to repay its debt. But the market soon erased losses and turned higher as investors began snapping up biotech, health care provider and hospital sector stocks in the wake of the House of Representatives' approval of the health care bill. Many of those stocks have been stuck in narrow trading ranges over the last year amid questions about the breadth of any bill and whether or not Congress would approve it. But the removal of that uncertainty seemed to help lift the stocks beyond those ranges. "The bill is being received well so far, but we have to see what comes out of it down the road," said Stephen Carl, head equity trader at Williams Capital Group. He said it is too soon to determine exactly how it might impact different sectors and groups. Some concerns about Greece lingered after reports showed that influential member nation Germany might not go along with European Union efforts to help the country cut down its debt. But those concerns were overshadowed by the focus on health care. Stocks slipped Friday at the end of another up week for stocks. The Dow, Nasdaq and S&P 500 have all advanced in four of the last five weeks. All three major indexes ended at roughly 18-month highs in Thursday's session. "We're seeing a little euphoria now, but it could level off to the downside in the short term," said Carl. He said that markets will have a better sense of direction after the release of the economic news due later this week, including the existing home sales index on Tuesday and the durable goods orders report on Wednesday. After the close, the Senate Banking Committee approved a regulatory reform bill put forth by Sen. Christopher Dodd, D-Conn., passing it on to the full Senate for the vote.
