Uncertainty About Obamacare Repeal Leads To Choppy Trading - U.S. Commentary

(RTTNews) - Following the sell-off seen in the previous session, stocks turned in a relatively lackluster performance during trading on Wednesday. The major averages eventually ended the session mixed.

While the Dow edged down 6.71 points or less than a tenth of a percent to 20,661.30, the Nasdaq climbed 27.82 points or 0.5 percent to 5,821.64 and the S&P 500 rose 4.43 points or 0.2 percent to 2,348.45.

The choppy trading on Wall Street was partly due to uncertainty about the fate of the Republican plan to repeal and replace Obamacare.

The latest reports suggest House Republicans may not have the votes to pass their healthcare plan in a vote expected to be held on Thursday.

The Republican plan faces an even tougher uphill climb in the Senate, raising concerns about what the GOP can accomplish even with a unified government.

If the healthcare bill fails, it could imperil President Donald Trump's other policies such as tax reform and increased infrastructure spending.

On the U.S. economic front, the National Association of Realtors released a report showing a bigger than expected pullback in existing home sales in the month of February.

NAR said existing home sales tumbled by 3.7 percent to an annual rate of 5.48 million in February after jumping by 3.3 percent to a rate of 5.69 million in January. Economists had expected sales to drop to 5.58 million.

The bigger than expected decrease came after existing home sales surged up to their highest rate in almost ten years in the previous month.

Sector News

After falling sharply in the previous session, steel stocks showed a notable move back to the upside. The NYSE Arca Steel Index climbed by 1.2 percent after plunging by 5.7 percent on Tuesday.

Computer hardware stocks also moved notably higher over the course of the trading session, resulting in a 1.1 percent advance by the NYSE Arca Computer Hardware Index.

Supermicro (SMCI) and Western Digital (WDC) turned in two of the computer hardware sector's best performances on the day.

On the other hand, tobacco stocks came under pressure, dragging the NYSE Arca Tobacco Index down by 1.2 percent. Alliance One (AOI) led the sector lower, tumbling by 6.1 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region saw considerable weakness during trading on Wednesday. Japan's Nikkei 225 Index plunged by 2.1 percent, while Hong Kong's Hang Seng Index slumped by 1.1 percent.

The major European markets also moved to the downside on the day. While the French CAC 40 Index edged down by 0.2 percent, the German DAX Index fell by 0.5 percent and the U.K.'s FTSE 100 Index slid by 0.7 percent.

In the bond market, treasuries extended the upward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 4 basis points to 2.396 percent.

Looking Ahead

Traders are likely to keep an eye on Capitol Hill on Thursday, as the House is expected vote on the Republican healthcare bill.

Reports on weekly jobless claims and new home sales may also attract attention along with remarks by Federal Reserve Chair Janet Yellen and Minneapolis Fed President Neel Kashkari.