Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How UnitedHealth Group Inc. (UNH) Helped Ease the Dow’s Pain: Vanguard Health Systems, Inc. (VHS), ACADIA Pharmaceuticals Inc. (ACAD)

Investors got what they expected over the weekend, as a bailout for banks in Cyprus finally materialized at the last minute. But apparently, the exact terms of the bailout weren’t what investors had been hoping to see. After initially gaining ground and sending the S&P 500 close to a new record early in the day, stocks reversed dramatically, plunging to losses of more than 100 points. The selloff came from fears that a cascading impact of bank-related problems in other European countries such as Spain and Italy could result from the Cypriot deal. By the close, the Dow Jones Industrials were down 64 points, although broader markets were down a bit less steeply.

ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD)But some stocks in the Dow rose. UnitedHealth Group Inc. (NYSE:UNH) gained three-quarters of a percent as it managed to pick up some business serving Arizona’s Medicaid program in the two largest counties in the state, as well as winning a contract serving children’s rehab statewide. The pick-up came at the expense of Vanguard Health Systems, Inc. (NYSE:VHS), which saw its shares drop more than 6% on news that it had lost the Arizona contract. Health-care companies will increasingly have to defend their territory as competition increases, especially on government contracts that will get more important as Obamacare takes effect.

Elsewhere, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) soared nearly 10% as an analyst from Jefferies expects its psychosis treatment pimavanserin, which targets patients who have Parkinson’s disease, to gain FDA approval. Following favorable data reported at a conference of neurologists last week, the company has already seen substantial gains recently, but even an application for approval could still be some months away.

Finally, Nordic American Tanker Ltd (NYSE:NAT) jumped more than 5% on favorable comments from much-followed analyst Jim Cramer last Friday night. Although the tanker company is arguably a speculative play based on an expected eventual rebound in the hard-hit shipping industry, especially given analyst expectations that the company will keep losing money at least through 2014, Nordic American does have a relatively clean balance sheet, giving it the ability to make smart strategic asset acquisitions as well as letting it sustain a substantial dividend yield approaching 6%.

The article How UnitedHealth Helped Ease the Dow’s Pain originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends UnitedHealth Group.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Loading Comments...