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US markets closed mostly higher; Dow ends in red

19 Jul 2017 Evaluate

The US markets closed mostly higher on Tuesday, with the S&P 500 and the Nasdaq closed at records as gains in tech stocks offset weakness in telecom services and energy shares. There were concerns that the collapse of the health-care bill could unhinge the market after the Republican leaders in the Senate late Monday ditched their effort to repeal and simultaneously replace Obamacare, also known as the Affordable Care Act. On the economy front, sentiment among home builders slid in July after a stretch of strong months as rising costs for materials started to pinch. The monthly confidence gauge from the National Association of Home Builders fell two points to a reading of 64. June’s reading, initially reported as 67, was revised down one point. The index now stands at the lowest level since before the election. Builders had high hopes for the new administration after then-candidate Donald Trump addressed the trade group in August, pledging to roll back regulations.

Meanwhile, the price of imported goods fell in June for the third time in four months, the latest signal that inflation in the US has waned after a rapid buildup last year. The import price index dropped 0.2% last month, largely reflecting lower costs of imported oil. The annualized rate of import inflation slowed again to 1.5%, down from a five-year high of 4.7% in the January. Other barometers that track US wholesale and consumer prices, including the Federal Reserve’s preferred PCE inflation index, has also tapered off in the past several months.

The Nasdaq added 29.88 points or 0.47 percent to 6,344.31, the S&P 500 edged higher by 1.47 points or 0.06 percent to 2,460.61, while the Dow Jones Industrial Average lost 54.99 points or 0.25 percent to 21,574.73. 


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