X Futures for the Dow Jones industrial average, S&P 500 index and Nasdaq 100 were flat to slightly higher early Friday morning as White House aides told GOP lawmakers that President Trump is done negotiating and wants a House vote on the ObamaCare replacement bill on Friday.
It could be a key day for bank stocks such as Bank of America (BAC), Citigroup (C) and Dow components JPMorgan Chase (JPM) and Goldman Sachs (GS).
But big-cap techs Google parent Alphabet (GOOGL), Amazon (AMZN) and Netflix (NFLX) face key technical tests. All five are big S&P 500 index stocks.
Dow industrials futures rose 0.2% vs. fair value. S&P 500 index futures climbed less than 0.1% above fair value while Nasdaq 100 futures were break-even. All were off late Thursday highs.
During Thursday stock market trading, the Dow Jones industrial average erased intraday gains and closed just below break-even after the House delayed a planned Thursday evening vote due to a lack of support. The S&P 500 and Nasdaq composite fell 0.1%.
It's unclear if the House actually will vote Friday, especially if the American Health Care Act lacks sufficient support.
Markets are worried that a health care defeat could derail Trump's tax cuts and other pro-growth agenda items. That's what triggered Tuesday's big stock losses. But some analysts argue that a quick American Health Care Act defeat could speed up tax cuts.
A Tremor In The Force
The CBOE Volatility Index, the market's so-called fear gauge, hit a 2017 high on Thursday. But that's a little like saying Shaquille O'Neal is having a career year for making free throws — it's not that high. The "VIX" has been trading near excessive bullish levels for months.
Bank stocks were searching for direction. Bank of America, Citigroup and Goldman Sachs clung to slim gains Thursday, while JPMorgan and Wells Fargo (WFC) edged lower. But all are trading below their 50-day moving averages after losing that key support line in recent days.
Big Internet Stocks Seek Support
Alphabet also undercut its 50-day line Thursday, as its YouTube advertising woes are becoming a real problem. The stock fell 1.3% to 839.65. It's down nearly 4% this week, dropping below an 867.10 buy point along the way. Google's parent had climbed for nine straight sessions before that, setting a record high last Friday.
Meanwhile, Netflix and Amazon are on the other side of the 50-day and 10-week lines, looking to find support there. Netflix has been rebounding from its 10-week line for a while, creating an alternative buy point around 140.
Amazon fell 0.1% to 847.38, continuing a four-weeks-tight pattern with an 860.96 entry. Amazon is still in range from a prior 821.75 buy point.
Hospital stocks and health insurers are among those most affected by the GOP health plans. But hospital stocks have been on the sick list for some time, while Medicaid-focused insurers such as Molina (MOH) also have struggled. Keep an eye on health insurer giants such as UnitedHealth (UNH). UnitedHealth has fallen for six straight sessions, closing Thursday at 165.29. That's pulling back to a 164.10 buy point as well as its 50-day line.
Asian Trading
Japan's Nikkei rose 0.8% intraday as the yen dropped against the dollar for the first time in several days. China's Shanghai composite and Hong Kong's Hang Seng dipped 0.1%.
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