By Barbara Kollmeyer and Anora Mahmudova, MarketWatch
Micron Technology jumps to new 52-week high after earnings
U.S. stock-market indexes pared earlier Friday gains, pushing
the Dow industrials in to negative territory, as investors grew
anxious about a pending House vote on a key health-care
legislation.
Markets pivoted lower on reports that the House Speaker Paul
Ryan went to the White House to meet with President Donald Trump,
which was being interpreted by some as a bad sign for the passage
of the bill.
The Dow Jones Industrial Average was bouncing around in
afternoon trade, most recently up 5 points, or less than 0.1%, at
20,661, after briefly turning negative as news flowed out of
Washington around the vote. Goldman Sachs Group Inc. (GS) weighed
on the blue-chip gauge, down more than 1%, and cutting nearly 20
points.
The S&P 500 index was up by 3 points, or 0.2%, to 2,349,
with eight of the 11 main sectors trading higher. Seen as a
defensive investment, utility stocks were up 0.6% to lead the
S&P 500's sectors.
The tech-heavy Nasdaq Composite Index was up 31 points, or 0.5%,
to 5,848.
All three main indexes looked set for weekly losses of about 1%,
their biggest since the week ended Dec. 30, according to FactSet
data.
"At a time when the S&P 500 is trading above its fair value
if you consider a forecast of $130 earnings per share on a 17-times
multiple, Wall Street would really like to be reassured about the
tax reforms," said Kim Caughey Forrest, senior analyst and
portfolio manager at Fort Pitt Capital Group.
Kate Warne, investment strategist at Edward Jones, said the
"inability of the Congress to pass the health-care bill would send
a signal that other policies, such as tax reforms may be delayed
too. The weakness over the past week is a reflection of such
concerns."
Voting on health-care legislation that would replace the
Affordable Care Act, widely known as Obamacare, is scheduled for
late-afternoon Friday. It was postponed from Thursday night after
its Republican backers failed to win over the bill's opponents
within their own party.
Read:Here's what the health-care vote means for financial
markets
(http://www.marketwatch.com/story/what-traders-are-watching-as-health-care-vote-looms-2017-03-23)
Market reaction to durable-good orders
(http://www.marketwatch.com/story/orders-for-durable-goods-post-second-straight-gain-2017-03-24)was
muted.
Need to know:The Trump rally's not over--at least until this
danger sign flashes
(http://www.marketwatch.com/story/the-trump-rallys-not-over-at-least-until-this-danger-sign-flashes-2017-03-24)
But modest gains on Friday were attributed to Trump playing
hardball on the health-care vote.
"In a shock-and-awe move, at least for us, President Trump
raised the stakes by declaring that should the bill get voted down
today, he is prepared to leave Obamacare in place and move on to
tax reform," IronFX analysts Marios Hadjikyriacos and Charalambos
Pissouros told clients in a note.
Read:Trump's ultimatum--pass health bill now or live with
Obamacare
(http://www.marketwatch.com/story/trump-ultimatum-pass-health-bill-now-or-live-with-obamacare-2017-03-23)
Economic docket and Fed speakers: New orders for durable goods
climbed 1.7% in February, rising for the second straight month.
Meanwhile, St. Louis Fed President James Bullard said U.S. labor
market improvement is slowing down, speaking at the Economic Club
of Memphis at 9:05 a.m. Eastern. New York Fed President William
Dudley will speak at a fireside chat at the York College, City
University of New York with questions from the audience starting at
10 a.m. Eastern Time.
Late Thursday, Dallas Federal Reserve President Robert Kaplan
said
(http://www.marketwatch.com/story/feds-kaplan-wants-gradual-rate-hikes-but-doesnt-expect-pause-in-policy-track-2017-03-23)
he wants a "gradual and patient" approach to raising interest rates
this year but that that doesn't necessarily include a "pause" in
the Fed's rate-tightening policy.
Stocks to watch: Shares of Micron Technology Inc.(MU) jumped
more than 11% to set a new 52-week high at $29.87 at the open after
guidance for the current quarter exceeded analysts' estimates late
Thursday.
Read:Micron profits from memory shortage, expects party to
continue
(http://www.marketwatch.com/story/micron-profits-from-memory-price-spike-expects-party-to-continue-2017-03-23)
Twitter Inc. (TWTR) rose 2.5% after a report the online news and
social-networking service is exploring a subscription-based premium
service for professionals
(Twitter%20Inc.%20is%20exploring%20a%20subscription-based%20premium%20service%20for%20professionals,%20which%20could%20create%20an%20important%20new%20revenue%20stream%20for%20the%20beleaguered%20company.),
which could open up a new revenue stream for the beleaguered
company.
GamesStop Corp.(GME) shares tumbled 12% after the videogame
retail chain said it would close at least 150 stores
(http://www.marketwatch.com/story/gamestop-to-shut-at-least-150-stores-shares-sink-2017-03-23).
SeaWorld Entertainment Inc.(SEAS) said Friday it would sell a
21% stake held by affiliates of Blackstone Group L.P
(http://www.marketwatch.com/story/blackstone-to-sell-its-seaworld-stake-to-chinas-zhonghong-at-a-33-premium-to-market-prices-2017-03-24).(BX)
to a unit of China's Zhonghong Zhuoye Group Co. Ltd. for $23 a
share, a 33% premium to Thursday's closing price of $17.31. Shares
rose 7.7% to $18.64.
Other markets: Several Asian stock markets
(http://www.marketwatch.com/story/asia-pacific-markets-pick-up-speed-despite-delay-on-us-health-care-bill-2017-03-23)
gained amid cautious optimism ahead of the final health-care vote.
European stock markets were sagging, with the FTSE 100 set for the
worst week since January.
The dollar firmed up against the yen, but eased against the
euro. The shared European currency jumped after eurozone flash PMIs
beat forecasts. Oil prices rose slightly, while gold eased.
(END) Dow Jones Newswires
March 24, 2017 12:35 ET (16:35 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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