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Stocks Dive On Health Reform Stumble: Financials, Steel Take Hits

Stock opened down hard on  Monday, as markets assessed the impact of a the failed health care policy initiative in the U.S. Congress late Friday.

The Dow Jones industrial average, the Nasdaq and the S&P 500 all opened 0.9% lower. Volume was mixed, with trade on the NYSE tracking higher and on the Nasdaq tracking lower than levels at the same time on Friday.

The White House and the GOP pulled their American Health Care Act effort before a late vote on Friday. The move stirred broad speculation on the administration's next moves, in terms of policy, as well as its ability to marshal support in a factional Congress.


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In Japan, Tokyo's Nikkei 225 tumbled 1.4% as investors scurrying for safe haven drove the yen higher vs. the dollar. In China, Hong Kong's Hang Seng Index slipped 0.7%. Europe's markets deepened their early losses in afternoon trade: the FTSE 100 in London shed 1.0%, Frankfurt's DAX dug in 01.1% and the CAC 40 in Paris fell 0.5%.

In Motion: Financials, Steel, Hospitals, Snap, G-III Apparel

Steel makers, which have been sensitive to federal policy factors since November's presidential election, were among the hardest hit in early trade. U.S. Steel (X) and AK Steel (AKS) each toppled 5% at the start of trade. Nucor (NUE) dropped 2%, Steel Dynamics (STLD) backed off more than 3%.

Hospital operators traded generally higher, with Community Health Systems (CYH) and HCA Holdings (HCA) each jumped 5%. Tenet Healthcare (THC) climbed 3%.

Apple (AAPL) dropped 0.8% at the open. Amazon.com (AMZN) dumped 1%. Facebook (FB) lost 0.7% and Netflix (NFLX) dropped 0.9%. Google parent Alphabet (GOOGL) slumped 0.9% after its shares received a price target cut from Nomura to 925 from 950, although the brokerage kept its buy rating on the stock.

Financials led the early downside on the Dow, with JPMorgan Chase (JPM) down 1.3% and Goldman Sachs (GS) diving 2.5%.

DuPont (DD) opened down 0.1%, despite its announcement that the European Union had granted conditional approval of its massive $77 billion merger with Dow Chemical (DOW). Dow shares slipped 0.2%.

Shares of Snapchat parent Snap (SNAP) resisted the undertow, rising 1% after a handful of brokerages launched coverage on the March 2 IPO with positive ratings. Morgan Stanley, RBC Capital, Jefferies and Goldman Sachs all initiated coverage with overweight, outperform and buy ratings on the stock and price targets set between 27 and 31. Snap shares have been basing since three days after their initial offering, and ended Friday's session 34% above their IPO price.

G-III Apparel Group (GIII) tanked 13%, while Cal-Maine Foods (CALM) trimmed its steep premarket loss to 2% after the open, following reporting quarterly results.

Oil, Copper, Dollar Dip; Gold, Bonds Climb

Oil prices dropped, with West Texas Intermediate down almost 2% to just above $47 a barrel. Metals were mixed: gold gained 1%, silver jumped 2.2% and copper slipped 2.2%. The dollar was broadly lower and bonds surged, sending the 10-year yield down 6 basis points to 2.35%.

The economic calendar was largely blank on the stock market today, although a busy week of comments from Federal Reserve officials begins with a speech scheduled for Chicago Federal Reserve Bank President Charles Evans at 1:15 p.m. ET.

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