The major equity indexes marginally lower or in the case of the NASDAQ, up a hair on Friday, with losses in Intel and Apple as investors worried about the future of promised corporate tax cuts following dueling plans unveiled by Republican lawmakers.
Intel fell 1.55 percent and Apple ended the trading day down 0.33 percent, both accounting more than any other companies for the S&P 500’s decline. A rise in media stocks helped limit the slide.
The S&P 500 and the Dow Jones Industrial Average ended the week lower for the first time in nine weeks. For the week, the Dow lost 0.5 percent and the S&P 500 slipped 0.21 percent. The Nasdaq gave up 0.2 percent for the week, snapping six weeks of weekly gains.
Senate Republicans released a tax plan on Thursday that differed from a version put forth by the House of Representatives on several key fronts, including putting off corporate tax cuts for a year.
Expectations of lower taxes, one of the Administration’s key campaign promises, have helped drive the S&P 500 up 20 percent since the 2016 presidential election.
Failure to cut corporate taxes would increase concerns about Trump’s ability to pass legislation and could shake markets that have been banking on lower tax rates to boost company earnings.
The S&P 500 on Friday stood at 18.1 times expected earnings, the highest since 2004, according to Thomson Reuters Datastream. Seven of the 11 major S&P sectors fell, with the energy index’s 0.81 percent dip leading the decliners as oil prices fell.
Nvidia rose 5.27 percent and hit a record high after the chipmaker’s revenue forecast for the current quarter topped estimates. Disney rose 2.05 percent as the promise of a new “Star Wars” trilogy overshadowed its weak quarterly results.
Time Warner closed 4.08 percent higher, while News Corp gained 5.15 percent.
Approximately 6.4 billion shares changed hands on the major domestic equity exchanges, a number that was below the 6.6 billion share daily average over the past 20 sessions.