* Trump Jr email chain cites Russian support for his father
* Yellen could shed light on pace of monetary tightening
* Snap shares drop after downgrade from underwriter Morgan
* Indexes: Dow flat, S&P down 0.1 pct, Nasdaq up 0.3 pct
(Updates to close)
By Kimberly Chin and Caroline Valetkevitch
NEW YORK, July 11 (Reuters) – U.S. stocks ended little
changed on Tuesday in a session marked by knee-jerk reactions to
events in Washington that drove investors to first worry then
hope about prospects for the Trump administration’s economic
Stocks fell sharply in late-morning trading after emails
disclosed by President Donald Trump’s eldest son cited Russian
support for his father’s 2016 election campaign.
The emails referred to a top Russian government prosecutor
offering the Republican Trump campaign damaging information
about Democratic rival Hillary Clinton.
But the market recovered later as U.S. Senate Republican
leader Mitch McConnell announced a two-week delay in the
Senate’s August recess to provide more time to work on
legislation and approve nominees, signaling prospects of
progress on the Republican agenda.
“It’s a play off hope. We had something that might be
negative and now we have something that might be positive,” said
Brad McMillan, chief investment officer for Commonwealth
Financial in Waltham, Massachusetts.
The Senate’s delayed break “says to me there’s a commitment
to make some of the changes that the markets would like to see,”
while Trump Jr’s email exchange could put more focus on the
Russia-related investigations that have overshadowed the White
House, he said.
Uncertainty over whether the Trump administration would be
able to push through its agenda this year has weighed on the
market, especially after repeated delays in getting a new health
care bill passed.
The Dow Jones Industrial Average closed up 0.55 point
to 21,409.07, the S&P 500 lost 1.9 points, or 0.08
percent, to 2,425.53 and the Nasdaq Composite added
16.91 points, or 0.27 percent, to 6,193.31.
Among sectors, energy led gains, with a 0.5 percent
increase, following gains in oil prices .
Upcoming congressional testimony from Federal Reserve Chair
Janet Yellen could shed light on the pace of U.S. monetary
tightening. Yellen will deliver her semi-annual monetary policy
testimony before the House Financial Services Committee on
Investors are also keeping an eye on second-quarter earnings
reports on Friday from big U.S. banks including JPMorgan Chase
, Wells Fargo and Citigroup.
“Investors are sitting on their hands waiting to see what’s
pushing the next move,” said Michael O’Rourke, chief market
strategist at JonesTrading in Greenwich, Connecticut. “They’re
not seeing any reason to be enthusiastically buying stocks so
close to a high.”
Snap Inc shares fell 8.9 percent after lead
underwriter Morgan Stanley downgraded the stock and raised
concerns about the social media company’s ability to compete
against rival Instagram.
Snap shares have tumbled some 45 percent from a high hit
shortly after their debut and slipped under their $17 IPO price
for the first time on Monday.
Advancing issues outnumbered declining ones on the NYSE by a
1.10-to-1 ratio; on Nasdaq, a 1.10-to-1 ratio favored advancers.
The S&P 500 posted 27 new 52-week highs and 11 new lows; the
Nasdaq Composite recorded 81 new highs and 69 new lows.
Volume was light, with about 5.9 billion shares changing
hands on U.S. exchanges. That compares with the 6.9 billion
daily average for the past 20 trading days, according to Thomson
(Editing by James Dalgleish)