Afternoon Markets: Dow buoyed by health vote

Drug companies led the Dow Jones higher on Monday, up 37.72 points (0.35%) to 10779.70, after US lawmakers gave the final approval to sweeping healthcare reforms on Sunday.

Although global drug makers will take a hit to earnings from 2011 when they will be forced to help pay for healthcare reform, they will benefit over the long term as an additional 32 million Americans become customers for their medicines.

Shares in Pfizer Inc, the world's biggest drug maker and Merck & Co Inc both gained in early business, trading at $17.18, up 0.27 points (1.60%) and $38.86 0.80 points (2.10%) respectively.

Elsewhere Boeing Co. continued its winning streak, after reporting mounting orders for its planes last week, rising 2.14% (1.52 points) to $72.37.

However, commodities-related stocks fared badly, following a rise for the US dollar which pushed prices down. Alcoa Inc. was trading at £14.18, down 0.08 points (0.56%) and Chevron Corp at $74.53, down 0.45 points (0.60%).

Meanwhile, the FTSE opened at 5624.71, down 25.41 points (0.45%), as fears over Greece's ailing economy resurfaced.

Pharmas again did well on the back of announcements in the US with artificial hip makers Smith and Nephew trading at 679p, up 9.50 points (1.42%). AstraZeneca was trading at £21.77 or up 35.50 points (1.21%).

Wolseley topped the losers' board with shares falling 48 points (2.96%) to £15.72 as the firm announced an overhaul of its business.

Elsewhere Icap, the world's biggest interdealer broker, was trading down 11.80 points (2.96%) to 379p after it failed to find a buyer.