Investing.com – U.S. stocks closed mixed on Friday, after the House of Representatives’ withdrew a health care bill to repeal and replace Obamacare, as chances of passing the bill appeared slim amid a lack of votes.
The vote on the bill was scheduled for 15:30 EDT but the House went into recess as Republicans deliberated whether to proceed with a vote on the bill while House Speaker Paul Ryan visited the White House at midday to warn President Trump that he lacked the votes to pass the American Health Care Act (AHCA).
House Speaker Ryan, in an update to reporters, following the withdrawal of the health care bill, mentioned that he spoke with President Trump and advised him to pull the bill as it would be “the best thing to do”.
Over the past week, investors were focused on the potential impact a setback on the bill could have on Trump’s ability to push through more ‘market sensitive’ legislation such as tax reform.
House Speaker Ryan, added to fears that the setback in health care reform could dampen the success of future legislation being passed, after he admitted that “it [the withdrawal of the health care bill] does make tax reform more difficult but it does not make it impossible”
The Dow offered the biggest reaction to the news, as it moved sharply off the lows but eventually closed in negative territory.
Meanwhile U.S. economic data heaped further pressure on equities, as The Commerce Department said Friday, orders for core durable goods, a category that excludes aircraft and military goods, rose 0.4% in February, which was less than economists’ forecast of a 0.5% rise.
The Dow Jones Industrial Average slumped 59 points, or 0.29%, to close at 20,596. The S&P 500 gained 0.11% and the Nasdaq Composite closed at 5,828 up 0.19%.
The top S&P 500 gainers included Micron Technology Inc (NASDAQ:MU) up 7.4%, and Centene Corporation (NYSE:CNC) up 5.2%, while Under Armour Inc C (NYSE:UA) added 4.1%.
Martin Marietta Materials Inc (NYSE:MLM) down 2.9%, Fluor Corporation (NYSE:FLR) down 2.5% and Nucor Corporation (NYSE:NUE) slumped 2.4%, were among the worst S&P 500 performers of the session.