BUSINESS NEWS |
Choppy day on Wall Street; all eyes on Trump and healthcare
DJ: 20,661.30 -6.71 NAS: 5,821.64
+27.82 S&P: 2,348.45
+4.43 3/22
(Reuters) Wall
Street ended mixed after a choppy session on Wednesday as investors focused on President
Donald Trump's struggle to push through a healthcare bill and snapped up stocks
after a steep drop the day before. U.S. stocks in the previous session had suffered their
worst day since before Trump's election as investors worried that the president's
difficulty in overhauling healthcare was a sign he would also face trouble
pushing through promised corporate tax cuts that have been behind the market's
record-breaking rally since November.
Stocks
fell early in the day but later moved higher. Apple (AAPL.O) rose 1.7 percent
and provided the biggest boost to the three major indexes. "Investors with a lot of cash used yesterday's downturn and the
morning's weakness today as a buying opportunity," said Alan Lancz,
president of investment advisory firm Alan B. Lancz & Associates in Toledo,
Ohio.
Trump
and Republican lawmakers appeared to be losing the support they need for
controversial healthcare legislation scheduled for a vote in the House of
Representatives on Thursday.
Losing or delaying the vote would bruise investors' confidence in Trump's
legislative ability and his ability to keep his big promises to
business.
"If
that happens, you could see a little bit of volatility in the market,"
said David Schiegoleit, managing director at U.S. Bank Private Client Reserve
in Los Angeles.
The
Dow was weighed down by a 7.05-percent fall in Nike (NKE.N) after the world's
largest footwear maker missed quarterly revenue estimates.
Oil prices touched four-month lows
after data showed U.S. crude inventories rising faster than expected.
The
S&P 500 has gained 10 percent since the election, spurred mainly by Trump's
agenda of tax cuts and infrastructure spending, but high valuations remain a
concern.
The
benchmark index is trading at about 18 times expected earnings compared to a
10-year average of 14, according to Thomson Reuters Datastream.
The Dow Jones Industrial Average .DJI declined 0.03
percent to end at 20,661.3 points, while the S&P 500 .SPX gained 0.19
percent to 2,348.45. The Nasdaq
Composite .IXIC added 0.48
percent to 5,821.64.
Seven
of the 11 major S&P sectors rose, with the technology index's .SPLRCT 0.8
percent gain leading the advancers.
The
financial sector .SPSY, which on Tuesday suffered its worst daily drop since
June, lost another 0.2 percent.
Snap
Inc (SNAP.N) jumped 9 percent.
The owner of messaging app Snapchat received a second analyst "buy"
rating following a red-hot public listing this month.
Sears
Holdings (SHLD.O) slumped 12.31
percent after the retailer warned on Tuesday about its ability to continue as a
going concern after years of losses and declining sales.
Advancing
issues outnumbered declining ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq,
a 1.33-to-1 ratio favored decliners.
The
S&P 500 posted 12 new 52-week highs and 14 new lows; the Nasdaq Composite
recorded 22 new highs and 87 new lows.
About
6.9 billion shares changed
hands in U.S. exchanges, just below the 7.0 billion daily average over
the last 20 sessions.
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