* Stocks rebound from steeper losses
* Healthcare top gaining group, as hospitals rise
* Snap surges after IPO banks give 'buy' ratings
* Dow down 0.22 pct, S&P down 0.10 pct, Nasdaq up 0.2 pct
(Updates to close of U.S. market)
By Lewis Krauskopf
March 27 The S&P 500 cut earlier losses on
Monday to end slightly lower, while the Dow declined for an
eighth straight session, as investors assessed how the defeat of
President Donald Trump's first major legislative action would
impact the rest of his agenda.
With stocks soaring to record highs after Trump's election,
investors are concerned about the fate of his economic plan,
including tax reform and infrastructure spending. Congressional
Republicans pulled their healthcare overhaul bill on Friday
after failing to gather enough votes.
But some analysts and investors are hopeful the healthcare
bill's failure will pave the way for quicker action on
legislation deemed desirable by investors, namely tax reform.
“Tax legislation done right and done quickly is a big
stimulant to earnings and the market," said Peter Tuz, president
of Chase Investment Counsel in Charlottesville, Virginia.
"The idea that tax legislation will come much quicker than
it would have if the healthcare legislation passed is positive,
and I think people are grasping onto that as a reason to hang on
and buy more," Tuz said.
The Dow Jones Industrial Average fell 45.74 points,
or 0.22 percent, to 20,550.98, the S&P 500 lost 2.39
points, or 0.10 percent, to 2,341.59 and the Nasdaq Composite
added 11.64 points, or 0.2 percent, to 5,840.37.
The Dow's eighth straight decline marked its longest such
streak in nearly six years.
The benchmark S&P 500 had fallen as much as 0.9 percent
initially on Monday and briefly dropped below its 50-day moving
average for the first time since just after the Nov. 8 U.S.
The S&P 500 has climbed 9.4 percent since Trump's election,
but the rally has stalled recently.
“What we have seen the last three years, every time there’s
a drastic down move, the market has been so resilient," said
Jake Dollarhide, chief executive officer of Longbow Asset
Management in Tulsa. "It’s just incredible what type of
short-term memory this U.S. market has and the buying appetite
global investors have for the U.S. market."
The telecoms sector fell 0.7 percent while
financial shares dropped 0.5 percent.
Healthcare climbed 0.4 percent, helped by hospital
stocks after the healthcare bill's failure.
In corporate news, Snap Inc shares jumped 4.8
percent after several of the Snapchat owner's IPO underwriters
gave it "buy" ratings.
About 6.3 billion shares changed hands in U.S. exchanges,
below the 7.1 billion daily average over the last 20 sessions.
Declining issues outnumbered advancing ones on the NYSE by a
1.00-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio favored advancers.
The S&P 500 posted 11 new 52-week highs and 7 new lows; the
Nasdaq Composite recorded 62 new highs and 54 new lows.
(Additional reporting by Yashaswini Swamynathan in Bengaluru;
Editing by Anil D'Silva and Nick Zieminski)