BALTIMORE ( Stockpickr) -- Capitol Hill looks to lead off the market for a second consecutive week, now that the health care reform bill has passed the House. While some risk has already been priced into health stocks, now that a reform bill has been passed, expect to see stocks show a mild response. Expect the biggest weight on Wall Street on Monday to be how it's being paid for: with an increase in taxes on investment income.
Despite single-digit gains in oil prices this year, shares of PetroChina ( PTR) have been off to a slow start. But the Chinese oil and gas supermajor should be catching additional investor attention as it expands its limited reserve capacities and becoming a more relevant global player in the industry. An earnings release today stands to sway additional investors this week.
With the potential for new taxpayer dollars to be spent on pharmaceuticals, big pharma, generic drug makers, and the pharmacies have been rallying around the idea of reform -- and putting up serious cash to help grease the wheels. But retail pharmacy chain Walgreen ( WAG) looks like one of the most compelling plays right now. Last month, the company, which operates nearly 7,500 brick-and-mortar locations in 50 states, announced plans to acquire New York City drugstore chain Duane Reed in a billion-dollar deal that would make Walgreen the leading drugstore chain in the biggest pharmacy market in the nation.
Apparel retailer Phillips-Van Heusen ( PVH) is already having a breakout month, with shares up more than 26% following the company's announcement that it would add Tommy Hilfiger to its portfolio of brands. The move was a coup for the apparel industry, which has been lodged in a fierce fight for fewer consumer dollars in the last couple of years.