Wall Street edges up, shaking off healthcare, North Korea worries

Traders work on the floor of the New York Stock Exchange in New York September 1, 2017. — Reuters pic
Traders work on the floor of the New York Stock Exchange in New York September 1, 2017. — Reuters pic

NEW YORK, Sept 23 — The S&P 500 closed slightly higher yesterday even though Apple was a drag, as worries about Washington’s latest healthcare legislation proposal eased and investors shrugged off concerns about North Korea.

Investors in the broader market were also encouraged by a jump in the Russell 2000 small-cap index, which ended with a record high close.

After a volatile day, the S&P’s healthcare sector ended 0.1 per cent higher as insurance stocks regained ground after Republican Senator John McCain said he opposed his Republican peers’ latest effort to replace President Barack Obama’s healthcare law.

The S&P technology sector managed to eke out a small gain as investors had more appetite for risk even with a decline of 1 per cent in Apple  shares on muted reactions to the iPhone maker’s latest product launch.

“The removal of the healthcare overhang, the fact the North Korea market impact is dwindling and the move in the Russell 2000 has all the smart investors thinking that the grind higher continues,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

The Dow Jones Industrial Average fell 9.64 points, or 0.04 per cent, to 22,349.59, the S&P 500 gained 1.62 points, or 0.06 per cent, to 2,502.22 and the Nasdaq Composite added 4.23 points, or 0.07 per cent, to 6,426.92.

Some investors moved to safe-haven assets such as gold, after North Korea said it might test a hydrogen bomb over the Pacific Ocean in response to US President Donald Trump’s threat to destroy the reclusive country.

But others felt that the market would cope with the ongoing stand-off between the countries, which has been ratcheting up in recent months. “If you cry wolf enough it loses its impact in the end,” Antonelli said.

Five of the 11 major S&P sectors ended the day lower and utilities led the decliners with a 0.7 per cent loss. After falling as much as 0.5 per cent, the healthcare sector ended 0.08 per cent higher.

Earlier in the day concern about the Graham-Cassidy healthcare bill had wreaked havoc with insurers’ stocks. UnitedHealth <UNH.N> closed down 1.1 per cent after falling as much as 3.6 per cent earlier in the day.

The small telecom services index, with only four stocks, was the biggest percentage gainer with a 1.4 per cent rise on consolidation speculation while the energy index rose 0.5 per cent as oil futures settled higher.

T-Mobile gained 1 per cent after Reuters reported that the cellphone network operator was close to agreeing tentative terms on a deal to merge with Sprint, whose shares jumped 6.1 per cent.

The report also pushed up bigger rivals Verizon Communications and AT&T Inc, which could benefit from having one less competitor.

Advancing issues outnumbered declining ones on the NYSE by a 1.82-to-1 ratio; on Nasdaq, a 1.91-to-1 ratio favoured advancers.

About 5.26 billion shares changed hands on US exchanges compared with the 6.03 billion average for the last 20 sessions. — Reuters

Related Articles

Up Next