Stock rally sput­ters af­ter health vote de­lay

An­a­lysts say in­vestors wor­ried about Trump’s pro-busi­ness agenda.

Austin American-Statesman - - BUSINESS - Mar­kets

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 bill 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 some in the GOP 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. econ­omy.

Near the close of trad­ing, House GOP lead­er­ship post­poned a vote on the Amer­i­can Health Care Act be­cause of a lack of sup­port.

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 asked.

Still, the losses were small, suggesting in­vestors think some of those pro­pos­als will be de­layed rather than aban­doned.

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

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