Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Overnight Markets: Healthcare and bank stocks pull Wall Street down

Overnight Markets: Healthcare and bank stocks pull Wall Street down

US stocks ended lower on Thursday, pushed lower by healthcare companies and banks, as investors worried about potential roadblocks to Republicans’ tax overhaul, offsetting their optimism over strong retail sales data.

The Standard & Poor's 500 index fell 11 points, or 0.4%, to 2,652. The Dow Jones industrial average fell 77 points, or 0.3%, to 24,509. The Nasdaq fell 19 points, or 0.3%, to 6,856.

The slide, which erased gains from earlier in the day, came on news that some Republican senators' support for the GOP's proposed tax overhaul bill was faltering.

Small-company stocks, which would be among the biggest beneficiaries of the bill's reduction of corporate income tax rates, declined more than the rest of the market.

However, shares of retailers gained after a government report showed that retail sales jumped in November. Mattel climbed 4.2%, while Tiffany & Co. advanced 3.4%.

Healthcare stocks accounted for much of the market's losses. Medical care services company DaVita fell 3.2%. Shares in several banks and other financial companies also declined. Navient fell 2.5%.

Pier 1 Imports slumped 29.5% after the home decor company cut its forecasts and said its business has struggled in December.

In deal news, Disney rose 2.8% after the company agreed to buy a large part of the Murdoch family's 21st Century Fox for about $52.4 billion in stock. Fox was the biggest gainer in the S&P 500, climbing 6.5%.

Teva Pharmaceuticals was another big gainer. The Israeli drugmaker jumped 10.2% after it said it would lay off 14,000 workers.

In Asia, stock markets were mostly lower on Friday in morning session as uncertainty about the progress of a sweeping US tax revamp outweighed an optimistic Japanese economic survey.

Japan's benchmark Nikkei 225 index fell 0.9% while South Korea's Kospi climbed 0.4%. Hong Kong's Hang Seng shed 1% and the Shanghai Composite in mainland China lost 0.6%. Australia's S&P/ASX 200 sank 0.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter