Investing.com – U.S. stocks closed flat on Thursday, after the House of Representatives passed a bill to repeal and replace Obamacare while energy stocks slumped to lows after oil prices hit a five-month low.
The House passed the bill, which would replace Obamacare subsidies with a system of tax credits, by a vote of 217 to 213. The bill is widely expected to face intense scrutiny in the Senate.
Meanwhile, energy stocks were the main laggards of the days, after crude prices hit a five-month low on the back of concerns of a glut in supply.
On the New York Mercantile Exchange crude futures for June delivery lost 4.81% to settle at $45.52 a barrel.
But gains in Financials, mostly banks, capped losses, as sentiment shifted towards financials, following an uptick in expectations of a June rate hike.
According to investing.com’s Fed rate monitor tool nearly 70% of traders expect the Fed to hike interest rates in June, compared to about 60% the previous week.
On the economic data front, investors mulled over mixed U.S. economic data, after initial jobless claims fell more than expected while factory orders eased in March.
The U.S. Department of Labor reported that initial jobless claims decreased by 19,000 to 238,000 in the week ended April 29, well below economists’ estimates.
The bullish initial jobless claims report came a day ahead of a Nonfarm payrolls report expected to be released Friday at 08:30 EDT.
The Dow Jones Industrial Average flat at 20,951.47. The S&P 500 closed flat and the Nasdaq Composite closed at 6075.34.55, up 0.05%.
The ‘Bulls and Bears’ on Wall Street
The top Dow gainers included; 3M Company (NYSE:MMM) up 1.8%, UnitedHealth Group Incorporated (NYSE:UNH) up 0.9%, while Coca-Cola Company (NYSE:KO) added 0.8%.
Caterpillar Inc (NYSE:CAT) down 2.1%, Chevron Corporation (NYSE:CVX) down 1.8% and Exxon Mobil Corporation (NYSE:XOM) down 1.3%, were among the worst Dow performers of the session.