MARKET SNAPSHOT: Stock Market Logs Worst Weekly Loss In Months As House Scraps Health Bill

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Financials see biggest weekly decline since January 2016

Stocks closed mostly lower, with major indexes posting the biggest weekly losses in months, as House Republican pulled a controversial health-care bill from consideration after failing to secure enough votes to pass it.

The failure to achieve passage raises concerns about the outlook for corporate tax cuts and other elements of President Donald Trump's agenda, which analysts said was the reason for weakness in capital markets over the past week.

Read:Here's why financial markets are obsessed with the health-care vote (http://www.marketwatch.com/story/what-traders-are-watching-as-health-care-vote-looms-2017-03-23)

"At a time when the S&P 500 is trading above its fair value if you consider a forecast of $130 earnings per share on a 17-times multiple, Wall Street would really like to be reassured about the tax reforms," said Kim Caughey Forrest, senior analyst and portfolio manager at Fort Pitt Capital Group.

The S&P 500 index closed 1.98 points, or 0.1%, lower at 2,343.98, with six of the 11 main sectors finishing in negative territory. Over the week, the benchmark index lost 1.4%, its biggest decline since November. Financials sector suffered a 3.8% loss over the week, its largest decline since January 2016.

Also read:Stock-market volatility threatens to make glorious return (http://www.marketwatch.com/story/stock-markets-old-friend-volatility-threatening-to-make-a-glorious-return-2017-03-24)

The Dow Jones Industrial Average dropped 59.86 points, or 0.3%, to 20,596.72. Goldman Sachs Group Inc. (GS) weighed on the blue-chip gauge, down 1.5%. The index fell 1.5% over the week, its steepest decline since September.

See:Health-care bill pulled after Republican disagreement: live blog and video (http://blogs.marketwatch.com/capitolreport/2017/03/24/health-care-bill-heads-for-vote-in-house-live-blog-and-video/)

The tech-heavy Nasdaq Composite Index eked out a small gain, rising 11.04 points, or 0.2%, to 5,838.74, but logged a 1.2% weekly loss, its largest since December.

Kate Warne, investment strategist at Edward Jones, said the "inability of the Congress to pass the health-care bill would send a signal that other policies, such as tax reforms may be delayed too. The weakness over the past week is a reflection of such concerns."

Stocks to watch: Shares of Micron Technology Inc.(MU) jumped 7.4% after guidance for the current quarter exceeded analysts' estimates late Thursday.

Read:Micron profits from memory shortage, expects party to continue (http://www.marketwatch.com/story/micron-profits-from-memory-price-spike-expects-party-to-continue-2017-03-23)

Twitter Inc. (TWTR) rose 1.4% after a report the online news and social-networking service is exploring a subscription-based premium service for professionals (Twitter%20Inc.%20is%20exploring%20a%20subscription-based%20premium%20service%20for%20professionals,%20which%20could%20create%20an%20important%20new%20revenue%20stream%20for%20the%20beleaguered%20company.), which could open up a new revenue stream for the beleaguered company.

GamesStop Corp.(GME) shares tumbled 14% after the videogame retail chain said it would close at least 150 stores (http://www.marketwatch.com/story/gamestop-to-shut-at-least-150-stores-shares-sink-2017-03-23).

SeaWorld Entertainment Inc.(SEAS) said Friday it would sell a 21% stake held by affiliates of Blackstone Group L.P (http://www.marketwatch.com/story/blackstone-to-sell-its-seaworld-stake-to-chinas-zhonghong-at-a-33-premium-to-market-prices-2017-03-24).(BX) to a unit of China's Zhonghong Zhuoye Group Co. Ltd. for $23 a share, a 33% premium to Thursday's closing price of $17.31. Shares rose 4.7% to $18.13.

Other markets: Several Asian stock markets (http://www.marketwatch.com/story/asia-pacific-markets-pick-up-speed-despite-delay-on-us-health-care-bill-2017-03-23) gained ground. European stock markets closed lower, with the FTSE 100 logging the worst week since January.

The dollar firmed up against the yen, but eased against the euro. The shared European currency jumped after eurozone purchasing managers indexes beat forecasts. Oil prices settled higher, while gold eased.

(END) Dow Jones Newswires

March 24, 2017 16:44 ET (20:44 GMT)

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