Stocks Sputter on Trumpcare Vote Delay 03/23 17:34
After a promising start, U.S. stock indexes gave up an early rally and ended
mostly lower Thursday after Republicans delayed a vote on their health care and
left investors concerned about delays for the business-friendly agenda of
President Donald Trump.
NEW YORK (AP) -- After a promising start, U.S. stock indexes gave up an
early rally and ended mostly lower Thursday after Republicans delayed a vote on
their health care and left investors concerned about delays for the
business-friendly agenda of President Donald Trump.
The Dow Jones industrial average rose as much as 96 points just before 1
p.m., but doubts about the bill cast a shadow over the market as hardline
conservatives said they didn't support it. Health care stocks turned lower.
Elsewhere, a growing boycott of YouTube advertising hurt Alphabet, Google's
parent company. Smaller companies did better than the rest of the market and
more stocks rose than fell, a sign investors are still confident in the U.S.
Near the close of trading, House Republican leadership postponed a vote on
the American Health Care Act because of a lack of support. Conservatives and
more moderate Republicans had opposing concerns about the bill, which is widely
disliked by House Democrats.
Jamie Cox, managing partner for Harris Financial Group, said investors are
worried about how the Republican-controlled Congress and White House will come
together on issues including tax reform, a debt ceiling increase, and a boost
in infrastructure spending.
"If the Republicans are having such a difficult time making changes to
something they universally agree upon, how on earth are they going to agree on
the more complicated tax cut that is coming through later in the year?" Cox
The Standard & Poor's 500 index fell 2.49 points, or 0.1 percent, to
2,345.96. The Dow lost 4.72 points to 20,656.58. The Nasdaq composite slid 3.95
points, or 0.1 percent, to 5,817.69. The Russell 2000 index, which tracks
smaller companies, gained 7.83 points, or 0.6 percent, to 1,353.43.
Bond prices edged lower. The yield on the 10-year Treasury note, which has
skidded over the last few days, rose to 2.42 percent from 2.40 percent. That
modest increase gave banks and other financial companies a lift.
The S&P 500 banking index had plunged 5 percent over the previous four days
as bond yields and interest rates decreased. Banks turned higher on Thursday.
SunTrust Banks added 67 cents, or 1.2 percent, to $54.85 and Huntington
Bancshares rose 24 cents, or 1.9 percent, to $13.02.
Alphabet fell as a YouTube advertising boycott spread. Companies including
Johnson & Johnson, AT&T and Verizon have suspended their YouTube ad campaigns
in the last week because their ads were appearing alongside offensive videos,
including some that promoted terrorism. The ads are placed automatically and
Google has said it will do more to block offensive videos. YouTube is one of
the fastest-growing parts of Google's ad system.
Alphabet lost $10.15, or 1.2 percent, to $839.65. Technology companies
lagged the rest of the market. Alphabet is the second-most valuable company on
the S&P 500 after Apple.
Companies that run Medicaid programs, like Centene and Molina Healthcare,
stumbled in afternoon trading and health insurance companies like UnitedHealth
and Humana took small losses. Drug companies also fell. Hospital operators
traded higher, as did medical device makers.
Cox, of Harris Financial, said stocks probably won't fall much further if
the bill ultimately fails because investors will focus on other items on
"The market doesn't care a bit about the health care legislation," he said.
PVH, which owns Calvin Klein and Tommy Hilfiger, jumped after its
fourth-quarter profit and sales topped analyst estimates. It said sales for the
Hilfiger brand grew in the latest quarter and its business is doing well in
spite of high discounts in the U.S. The stock gained $7.70, or 8.5 percent, to
Discount retailer Five Below also climbed after it surpassed Wall Street
projections in its fourth quarter. The stock rose $4.12, or 10.8 percent, to
$42.25. Retailers have struggled in recent months, but consumer-focused
companies did better than the broader market on Thursday. Nike, which plunged 7
percent a day earlier, recovered $1.45, or 2.7 percent, to $55.37.
U.S. crude oil lost 34 cents to $47.70 a barrel in New York. Brent crude,
used to price international oils, slipped 8 cents to $50.56 a barrel in London.
That pulled energy companies lower.
In other energy trading, wholesale gasoline fell 1 cent to $1.59 a gallon.
Heating oil lost 1 cent to$1.49 a gallon. Natural gas rose 4 cents to $3.05 per
1,000 cubic feet.
Gold fell $2.50 to $1,247.20 an ounce, which ended a small five-day streak
of gains. Silver rose 2 cents to $17.59 an ounce. Copper picked up 1 cent to
$2.64 a pound.
The dollar inched up to 111.07 yen from 110.92 yen. The euro slid to $1.0786
Germany's DAX jumped 1.1 percent and the CAC 40 in France rose 0.8 percent.
Britain's FTSE 100 index added 0.2 percent. In Japan the Nikkei 225 gained 0.2
percent. Hong Kong's Hang Seng was flat and the South Korean Kospi gained 0.2