NEW YORK (AP) — U.S. stocks gave back much of an early gain but were mostly higher Friday afternoon as investors bid up technology and consumer-focused companies. House Republicans say their health care bill does not have enough support to pass in a vote this afternoon, which is casting some doubt on President Donald Trump’s business-friendly agenda. Stocks are on track for their biggest weekly loss of 2017.
KEEPING SCORE: The Standard & Poor’s 500 index remained at 2,346 as of 2 p.m. Eastern time. The Dow Jones industrial average lost 32 points, or 0.2 percent, to 20,624. It rose as much as 61 points earlier on. The Nasdaq composite, which has a high concentration of technology companies, rose 17 points, or 0.3 percent, to 5,834.
For the second day in a row, most stocks are rising and smaller companies are doing better than larger ones. That suggests investors remain optimistic about the broader economy. The Russell 2000 index of smaller-company stocks added 3 points, or 0.2 percent, to 1,356.
TECH LEADS: Technology companies rose, continuing a strong run over the last few months. Chipmaker Micron Technology surged $2.38, or 9 percent, to $28.85 after its second-quarter earnings were much better than analysts expected, and data storage company Western Digital jumped $2.42, or 3.2 percent, to $78.61.
Also rising were utility companies like WEC Energy and PG&E, and consumer-focused companies like Starbucks, Nike, and clothing company PVH.
HEALTH BILL HOLDUP: Investors wonder if a failed vote or a long debate would delay action on tax cuts, infrastructure spending, and regulatory cuts. Those are aspects of Trump’s proposed agenda that they are excited about.
The legislation would provide tax credits for people buying their own insurance and would scale back the government’s role in helping people afford coverage. It would likely leave more Americans uninsured and would make big changes to Medicaid, a joint federal-state health program for low-income Americans.
Health care investors appeared to be wagering that the bill will fail. Hospital operators like HCA Holdings and Universal Health Systems rose, and so did insurers that do a lot of business with Medicaid, like Centene and Molina Healthcare. When the act was introduced, those stocks traded lower because investors were concerned hospitals would have to take in more patients who lack insurance and that insurers would get less money from Medicaid. The largest national health insurers were mixed Friday.
IDLING: While investors weren’t panicking about the state of Trump’s agenda, there were some signs of concern. Construction and machinery companies and basic materials makers fell. Construction materials maker Vulcan Materials sank $2.51, or 2.2 percent, to $112.88. Martin Marietta Materials, which sells granite, limestone, sand and gravel, lost $4.60, or 2.2 percent, to $208.89. Steel maker Nucor declined 82 cents, or 1.3 percent, to $60.44. Engine maker Cummins shed 95 cents to $151.27. Those stocks have climbed since the election because investors expect them to benefit from greater infrastructure spending.
MAKING A SPLASH: SeaWorld Entertainment jumped after a big investment from China. SeaWorld said real estate holding company Zhonghong Zhuoye Group bought a 21 percent stake from Blackstone Group. It said the Chinese firm paid $23 a share, and an executive will join SeaWorld’s board. The stock has struggled in recent years because of controversy over the condition of SeaWorld’s killer whales, which hurt attendance. The stock gained $1.03, or 6 percent, to $18.34 Friday.
FULL STOP: Video game retailer GameStop disclosed weaker-than-expected revenue as consumers cut back on shopping while they waited for companies to introduce the next generation of game systems. GameStop’s forecasts for this year fell far short of analyst forecasts. The company said it expects to earn between $3.10 to $3.40 per share in its current fiscal year, while FactSet says analysts expected $3.73 a share. The stock dropped $2.96, or 12.4 percent, to $21.
NOT A PHOTO FINISH: Sport shoe retailer The Finish Line slumped after the company said it had to cut prices in the fourth quarter because consumers didn’t like some of its products. Like many other retailers, it also faced generally tough business conditions. The company reported a loss due to impairment charges and it cut its annual profit outlook. The stock shed $3.19, or 19.8 percent, to $12.87.
BONDS: Bond prices rose slightly. The yield on the 10-year Treasury note fell to 2.40 percent from 2.42 percent.
ENERGY: U.S. crude oil futures rose 14 cents to $47.84 a barrel in New York. Brent crude, used to price international oils, added 12 cents to $50.78 a barrel in London. Energy companies took small losses, however.
CURRENCIES: The dollar inched down to 110.86 yen from 111.07 yen. The euro edged up to $1.0808 from $1.0786.
METALS: Gold rose $1.30 to $1,248.50 an ounce. Silver jumped 16 cents to $17.75 an ounce. Copper lost 1 cent to $2.63 a pound.
OVERSEAS: In Germany, the DAX added 0.2 percent and the French CAC 40 dropped 0.2 percent and Britain’s FTSE 100 index dipped 0.1 percent. Japan’s benchmark Nikkei 225 index rose 0.9 percent following recent losses. The Kospi of South Korea shed 0.2 percent while Hong Kong’s Hang Seng reversed earlier losses to finish 0.1 percent higher.
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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay
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