S&P 500 slips as health-care losses overshadow strong earnings and China growth

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Positive momentum early Wednesday faded throughout the day, with the Dow closing flat and the S&P 500 closing down 0.23%. Health care was the worst-performing sector.

div > div.group > p:first-child"> The Dow Jones Industrial Average dipped 3.12 points to 26,449.54, while the S&P 500 fell 0.2% to 2,900.45. The Nasdaq Composite closed 0.05% lower at 7,996.08. The Nasdaq 100, which is made up of the 100 largest companies in the composite index, rose 0.3% and hit a record high."Health care is one of the poorest performers this year," said Ernie Cecilia, CIO at Bryn Mawr Trust."Some of it is political.

Health-care names are now falling"under that umbrella of political uncertainty," said Yousef Abbasi, director of U.S. institutional equities at INTL FCStone."A lot of people are going to get more uncomfortable with the situation in managed care before they get comfortable with it." PepsiCo also reported stronger-than-forecast earnings as sales in its Frito-Lay business grew by 5.5%. The stock rose 3.8%. Rail transportation giant CSX, meanwhile, saw its stock rise 4% on the back of its quarterly results.

Not all stocks reacted positively to their quarterly reports, however. IBM reported better-than-expected earnings, but its stock fell 5.5% as its revenue fell for a third straight quarter. Netflix also fell 1.6% as its guidance for second-quarter earnings disappointed investors.

 

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