Stocks Retreat Amid Worries Trump Doesn’t Have the Healthcare Votes

After opening higher on Friday and sustaining its early gains most of the session, U.S. equities have given back most of their gains amid increasing worries that U.S. Republicans may not be able to push through the American Health Care Act.

At 1738 GMT, the blue chip June E-mini Dow Jones Industrial Average futures contract is trading at 20604, up 16 points or 0.08%.  The benchmark June E-mini S&P 500 Index is up 7.00 points at 2347.00 or 0.30% and the tech-based June E-mini NASDAQ-100 Index is trading at 5384.50, up 30.00 or 0.56%.

The cash markets are trading a little differently. The Dow Jones Industrial Average is down 7.78, or -0.04% at 20648.80. The S&P 500 Index is at 2349.87, up 3.91 or +0.17% and the NASDAQ Composite is at 5844.35, up 26.66 or +0.46%.

The health care bill needs a simple majority – or 215 – to be approved in the House. With no Democrats expected to support it, House Speaker Paul Ryan can afford to lose no more than 22 Republican votes. However, early in the day, Speaker Paul Ryan rushed to the White House to tell Trump that they might not be able to pass the bill if they vote today – the conclusion was the votes just aren’t there right now.

As of 1754 GMT, the vote is still on for 1930 GMT. White House rep Sean Spicer told the press that “It is now up to voters,” Later, Spicer added:  “Every single thing has been done to maximize the vote count on this.”

Spicer also said that Trump would take credit for the bill, no matter the outcome and that Trump left all the cards on the table. For Trump, it is a take it or leave it approach. Late last night, Trump said if the bill didn’t pass then he’d leave Obamacare intact for the year and move on to his tax reform plan.

Republican Representative Chris Collins said of Speaker Ryan, “He predicted that if the bill passes, it would be just barely. If it fails, it would fail by a massive number. Once some flee, others who want to vote no will follow.”

“I think if it passes, it passes by two. I’ve seen 21 hard now and 20 on the bubble.” Rep. Collins said. “Let’s put it this way:  They want to vote no. If it goes down, we’ll lost it by 40 votes.”

“What happens to the party if bill fails? “It’s a big black eye, oh my goodness,” Collins said.”