Wall Street rises, takes healthcare bill in stride

NEW YORK (Reuters) - Stocks rose on Monday, helped by gains in the healthcare sector as passage of a bill to overhaul the system eased uncertainty for investors.

The legislation was passed by the House of Representatives late on Sunday, and while analysts have raised concerns it will squeeze company profits and add to costs, they said much of the negative impact was already priced in.

Hospital and pharmaceutical companies could likely benefit from the bill. Pfizer Inc , the world's largest drug company, rose 1.8 percent to $17.22. Merck & Co advanced 1.3 percent to $38.56.

The Morgan Stanley Healthcare Payor Index <.HMO> of insurance providers gained 1.2 percent, putting it on track for a sixth straight session of gains.

Overhauling healthcare "was anticipated, so it wasn't a shock to overall investor expectations that this would pass. It adds to higher taxes for many, but it's a not a game changer for stocks," said Steve Goldman, market strategist for Weeden & Co. in Greenwich, Connecticut.

The Dow Jones industrial average <.DJI> was up 56.76 points, or 0.53 percent, at 10,798.74. The Standard & Poor's 500 Index <.SPX> was up 6.60 points, or 0.57 percent, at 1,166.50. The Nasdaq Composite Index <.IXIC> was up 20.47 points, or 0.86 percent, at 2,394.88.

Shares of Boeing rose 2.1 percent to $72.20 after Barclays raised its price target on the company.

On the Nasdaq, shares of Oracle Corp advanced 1.8 percent to $25.65, putting it among the stocks giving the biggest lift to the index. The company is expected to report results later this week.

The debate over Greece's fiscal woes heated up, initially dragging on sentiment. A European Commission official pressed Germany to agree on a financial safety net, while Greece's deputy prime minister accused German companies of profiting from the situation.

(Editing by Kenneth Barry)

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