Stocks Close Nearly Flat After Healthcare Vote Delayed - U.S. Commentary

(RTTNews) - Stocks showed a lack of direction over the course of the trading session on Thursday, as traders kept an eye on developments on Capitol Hill. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the session slightly lower. The Dow edged down 4.72 points or less than a tenth of a percent to 20,656.58, the Nasdaq dipped 3.95 points or 0.1 percent to 5,817.69 and the S&P 500 slipped 2.49 points or 0.1 percent to 2,345.96.

The choppy trading on Wall Street extended the lackluster performance seen in the previous session amid continued uncertainty about the fate of the House Republican plan to repeal and replace Obamacare.

Late in the trading day, House Republican leaders delayed a planned Thursday night vote on the bill amid indications of a lack of support for the legislation.

Hoping to win support for the bill, President Donald Trump purportedly made a "final offer" to a group of conservative Republicans earlier in the day.

Trump's offer reportedly included repealing a requirement that insurance plans cover a number of "essential benefits" such as hospital stays, mental health services and maternity care.

However, House Freedom Caucus Chairman Mark Meadows, R-N.C., told reporters "no deal" had been reached after a meeting at the White House.

While the negotiations are ongoing, CNN's whip count shows thirty House Republicans either opposed to or leaning against the bill.

With Democrats expected to be unified in opposition, Republicans can afford only twenty-one defections in the House and are likely to face an even tougher uphill battle in the Senate.

On the U.S. economic front, a report released by the Labor Department showed an unexpected increase in first-time claims for U.S. unemployment benefits in the week ended March 18th.

The report said initial jobless claims climbed to 258,000, an increase of 15,000 from the previous week's revised level of 243,000.

The increase surprised economists, who had expected jobless claims to edge down to 240,000 from the 241,000 originally reported for the previous week.

Meanwhile, a separate report from the Commerce Department showed a substantial increase in new home sales in the month of February.

The report said new home sales spiked by 6.1 percent to an annual rate of 592,000 in February after surging up by 5.3 percent to a revised 558,000 in January. Economists had expected new home sales to climb to a rate of 565,000.

With the much bigger than expected increase, new home sales soared to their highest level since reaching an eight-year high of 622,000 in July.

Sector News

Most of the major sectors once again ended the day showing only modest moves, contributing to another lackluster close by the broader markets.

Steel stocks saw considerable weakness, however, with the NYSE Arca Steel Index sliding by 1.1 percent. The index largely offset the 1.2 percent gain posted in the previous session.

Gold and biotechnology stocks also saw notable weakness on the day, while some strength was visible among tobacco and commercial real estate stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region saw modest strength during trading on Thursday. Japan's Nikkei 225 Index edged up by 0.2 percent, while Hong Kong's hang Seng Index closed just above the unchanged line.

The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.1 percent, the French CAC 40 Index advanced by 0.8 percent and the U.K.'s FTSE 100 Index crept up by 0.2 percent.

In the bond market, treasuries gave back some ground after trending higher in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.2 basis points to 2.418 percent.

Looking Ahead

Trading on Friday is likely to be impacted by developments on Capitol Hill, with traders looking for clues on the fate of the Republican healthcare bill.

A report on durable goods orders in the month of February may also attract attention along with speeches by several Federal Reserve officials.

On the earnings front, GameStop (GME), KB Home (KBH), and Micron (MU) are among companies releasing their quarterly results after the close of today's trading.