Stocks closed little changed after the American Health Care Act passed through the House of Representatives.
However, oil got smashed on Thursday amid a flood of bearish news.
The S&P 500 and the Nasdaq ticked slightly into the green, while the Dow ticked slightly into the red.
First up, the scoreboard:
- Dow: 20,947.00, -10.90, (-0.05%)
- S&P 500: 2,389.40, +1.40, (+0.06%)
- Nasdaq: 6,075.76, +3.30, (+0.06%)
- US 10-year yield: 2.352%, +0.043
- WTI crude: $US45.44, -2.38, -5.0%
1. The AHCA passed through the House of Representatives on Thursday, in a major win for President Donald Trump and House Speaker Paul Ryan. The legislation passed by a 217-213 margin, with 20 Republicans opposing the bill and all Democrats voting against it.
2. Oil cratered to its lowest level since November after Russia said it hasn’t yet made a decision about extending cuts.WTI crude, the US benchmark, is down by 4.3% at $US45.77 per barrel, while Brent crude, the international benchmark, is down by 3.8% at $US48.83 per barrel as of 1:01 p.m. ET. The Russian ruble tumbled, as well.
4. Traders are loading up on bets Snpa will hit a record high. At 10:18 a.m. ET, several bullish block trades totaling about 8,500 shares changed hands, betting that Snap will climb to $US27.50 by May 26. That would beat the company’s previous record of $US27.09, reached on March 3, two days after its initial public offering.
5. Initial claims dropped more than expected. Claims, which count the number of people who applied for unemployment insurance for the first time, fell by 19,000 to 238,000. Economists had forecast they would dip to 248,000 from 257,000.
6. The world’s hottest investment product is heading for a record-breaking year. US-listed exchange-traded funds saw $US283 billion in net inflows during 2016, taking aggregate assets under management to $US2.5 trillion, according to Citigroup. That dominance has only grown this year, with US ETFs absorbing a record amount in the first quarter.
7. A Wall Street bank eviscerated Tesla. In a scathing note sent out to clients on Thursday, a team of equity analysts at UBS maintained its “Sell” rating and $US160 price target on the stock. “We are lowering our 2017 estimate from -$US2.90 to -$US3.70 reflecting the Q1 miss and Q2 outlook (higher OpEx than forecast),” the team, led by Colin Lagan, wrote.