Healthcare outperforms after Sanders ends bid for Democratic nomination

Shares of healthcare-related stocks are outperforming a strong move in the broader market on Wednesday after Senator Bernie Sanders ended his presidential campaign, paving the path to for Joe Biden's Democratic nomination. "In a race reshaped, and eclipsed, by the escalating coronavirus crisis, Mr. Sanders faced no realistic path to the nomination after a series of lopsided losses to Mr. Biden, beginning in South Carolina in late February and culminating with a string of losses last month in crucial states like Michigan and Florida," said The New York Times earlier. WHAT'S NOTABLE: Senator Sanders had backed the notion of "Medicare for All," which worried some healthcare investors because of the natural pricing pressures. Biden is leaning towards an expansion of government-subsidized health insurance coverage but would keep the private system. Biden proposes to build on the Affordable Care Act signed into law 10 years ago by President Barack Obama and would look to add a public option to private plans sold on the ACA's public exchange. PRICE ACTION: Shares of health service organizations UnitedHealth Group (UNH), Cigna Corporation (CI) and Anthem (ANTM) are trading higher as is CVS Health (CVS), the owner of Aetna, as well as biotech stocks like Biogen (BIIB).