Wall Street Mixed Amid Tax Bill Progress and Economic Data; Dow Soars While Nasdaq Slips
The Dow jumped 400.17 points (0.9%) to 44,494.94 but the S&P 500 edged down 6.94 points (0.1%) to 6,198.01 and the Nasdaq slid 166.84 points (0.8%) to 20,202.89.
Wall Street saw mixed performance after recent strong gains pushed the Nasdaq and S&P 500 to record highs. Investors remained focused on Washington where the Senate narrowly passed President Donald Trumps sweeping tax and spending bill. Vice President J.D. Vance cast the tie-breaking vote, sending the legislation back to the House where Republicans hold a slim majority.
Institute for Supply Management released a report showing a modest increase by its reading on U.S. manufacturing activity in the month of June. The ISM said its manufacturing PMI crept up to 49.0 in June from 48.5 in May, although a reading below 50 still indicates contraction. Labor Department showed an unexpected increase by job openings in the U.S. in the month of May. The Labor Department said job openings climbed to 7.769 million in May from an upwardly revised 7.395 million in April.
Housing stocks turned in some of the market's best performances on the day, with the Philadelphia Housing Sector Index surging by 3.3%. Oil service stocks was significantly strong, as reflected by the 2.9% jump by the Philadelphia Oil Service Index. Transportation, banking and pharmaceutical stocks also saw notable strength while software and natural gas stocks moved to the downside.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index slumped by 1.2%, while China's Shanghai Composite Index rose by 0.4%. The major European markets also ended the day mixed while the U.K.'s FTSE 100 Index rose by 0.3%, the French CAC 40 Index closed just below the unchanged line and the German DAX Index slumped by 1%.
In the bond market, treasuries moved back to the downside following the notably rebound seen on Monday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 2.1 bps to 4.25%.
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