Finally, the decision is here. This morning, the Supreme Court announced it will uphold the individual insurance requirement that made up the core of President Barack Obama's health care law. The mandate obliges most Americans to have health insurance by 2014 or pay a financial penalty. Stocks reeled at the news, as the Dow Jones Industrial Average (INDEX: ^DJI) fell around 1% by noon and all 30 components were in the red. The pharmaceutical industry has generally supported the overhaul, which would help millions more Americans afford their medicines. Even so, health care giants Merck (NYS: MRK) and Pfizer (NYS: PFE) posted losses of 0.7% and 1.1%, respectively.

Uncertainty in Europe largely contributed to the losses on Wall Street, as European Union leaders grew increasingly skeptical that any meaningful progress would come of the crisis summit opening today. The euro hit a three-week low today, another sign pointing to further economic turmoil in the region. In London, the FTSE index dropped 0.6% over the pessimism. This drop was largely driven by Barclays' 15% drop after news broke of a hefty fine levied against the British bank for manipulation of interbank loan rates.

Barclays was not the only misbehaving bank making headlines, as JPMorgan (NYS: JPM) investors continued to receive bad news. This time, a report emerged that the recent losses from trading credit derivatives may total as much as $9 billion, far more than the previously reported figure of $2 billion. Shares plummeted 4.5% on the news, making JPMorgan the biggest loser on the Dow. The entire banking sector seemed to suffer by association, as Bank of America dropped 2.1% and Citigroup shares fell 3.6%.


Tech stocks dropped as well, with Intel (NAS: INTC) down 2.2% while Microsoft shares fell 1.8%. Microsoft has been suffering due to its heavy European exposure, as the company's software is largely pirated in the third world. And with more bad news coming from Europe every day, it is no wonder Microsoft shares are taking a hit.

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The article The Dow: 1 Patient Obamacare Can't Save originally appeared on Fool.com.

Charlie Kannel owns no shares of the companies mentioned above. The Motley Fool owns shares of Intel and JPMorgan Chase. Motley Fool newsletter services have recommended buying shares of Intel and Pfizer. The Motley Fool has a disclosure policy.
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5 Comments

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rick

Socialism never works, and that is what this is. Look at RUSSIA,and other countries that tried it. IT WILL ALWAYS FAIL.

June 29 2012 at 10:13 AM Report abuse rate up rate down Reply
rick

Why should I reply? You will not post anything I want to say.

June 29 2012 at 10:05 AM Report abuse rate up rate down Reply
LongTimeDriver

Just to clarify:

The market was at 12520 (+/- 20) just before the announcement, then ROSE to 12600 by end of day.

June 28 2012 at 5:25 PM Report abuse rate up rate down Reply
Artie

Just another forced policy on the backs of many Americans that can't afford to purchase health insurance so fine them so the federal government can receive more money and control those that must use their health plans. I'm sure this will be overturned if Obama is not re-elected. If he is re-elected, then it will survive 4 more years....
Why not provide an affordable health care plan to Americans and allow them to "choose" what they want...

June 28 2012 at 1:03 PM Report abuse rate up rate down Reply
1 reply to Artie's comment
tjintol

That is what the public option would have done, artie. The pubbies and joe lieberman killed it. Also wait till you turn 65. You will be "forced" to enroll in Medicare or pay a higher premium, the longer you wait.

June 28 2012 at 6:16 PM Report abuse rate up rate down Reply