Major Averages Close Mixed On The Day But Lower For The Week

After an early move to the downside, stocks turned mixed over the course of the trading session on Friday. While the tech-heavy Nasdaq crept into positive territory, the Dow and the S&P 500 remained stuck in the red.

The major averages ended the day on opposite sides of the unchanged line. While the Nasdaq inched up 0.89 points or less than a tenth of a percent to 6,750.94, the Dow slipped 39.73 points or 0.2 percent to 23,442.21 and the S&P 500 edged down 2.32 points or 0.1 percent to 2,582.30.

Even with the mixed performance on the day, the major averages all moved lower for the week. The Dow fell by 0.5 percent, while the Nasdaq and the S&P 500 both dipped by 0.2 percent.

The weekly declines ended eight-week winning streaks by the Dow and the S&P 500 and a six-week winning streak by the Nasdaq.

The mixed close on the day came as traders continued to digest the details of the Senate Republican version of tax reform legislation.

The Senate bill includes some significant differences from the House version, including a delay in the implementation of a cut in the corporate tax rate.

While the Senate version still reduces the corporate tax rate to 20 percent from 35 percent, the new rate would not take effect until 2019. The House bill would start the 20 percent rate next year.

A number of other differences related to issues such as deductions and the estate tax have raised some questions about the outlook for tax reform.

House Republicans could pass their version as early as next week, although it remains to be seen if GOP lawmakers can overcome the differences in the two bills to get legislation to the president’s desk.

On the economic front, a report from the University of Michigan showed a bigger than expected pullback in consumer sentiment in the month of November.

The report said the preliminary reading on the consumer sentiment index for November came in at 97.8 compared to the final October reading of 100.7. Economists had expected the index to dip to 100.0.


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