Stocks wobble, finish mixed as GOP pulls plug on health bill
NEW YORK — U.S. stocks flirted with sharp losses but managed a mixed finish after Republicans cancelled a vote on their health care bill because it became clear the bill would fail. Investors didn’t trade much as they waited for answers about the state of President Donald Trump’s business-friendly agenda.
For the second day in a row, stocks started higher and wilted as it became clear the health care bill was in trouble. The Dow Jones industrial average plunged as much as 126 points in afternoon trading on reports of the bill’s impending failure, although Wall Street cut its losses after the vote was cancelled. Consumer-focused companies like Nike, Starbucks and clothing company PVH rose.
The health care act became something of a proxy for the rest of the Trump agenda and it dominated the market for most of this week. It was the week run for stocks since the week before the presidential election. Banks and small-company stocks, which made huge gains after Trump was elected, both suffered their biggest losses in more than a year.
President Trump and other Republican leaders said they were moving on from health care, and Michael Scanlon, a portfolio manager for Manulife Asset Management, said investors will be glad if that happens.