US open: Stocks edge higher ahead of second healthcare bill vote

Ahead of the second attempt on the Congressional vote on the Republican healthcare bill, US stocks were trading slightly higher on Friday, but were on course for their worst weekly performance in months.

At 1550 GMT, the Dow Jones Industrial Average was up 0.12% to 20,681.67, the S&P 500 added 0.31% to 2,353.27 and the Nasdaq was 0.63% firmer to 5,854.12.

US stock indices were on track for about a 1% weekly loss, according to FactSet, the biggest since the week ended 30 December 2016.

Stocks were being helped by oil prices, with West Texas Intermediate up 0.25% to $47.82 per barrel and Brent crude rose 0.15% to $50.64.

On the data front, durable goods orders were mixed. Durable goods orders rose 1.7% month-on-month in February, a bit stronger than the 1.3% consensus expectations.

Apart from defense orders falling and non-defense aircrafts posting another strong rise, the report was softer than expected. Durable goods orders excluding transportation were up 0.5%, short of expectations for a 0.6% rise but up from a revised 0.2% increase in January.

Investors were keeping a close watch on today’s congressional vote to repeal the Affordable Care Act, or Obamacare, which was delayed on Thursday.

The delay added to concerns that President's Donald Trump's bill lacks enough support in the House of Representatives, even though the Republicans have majorities in both houses, and may struggle to get approval for the stimulus policies he has promised.

Ipek Ozkardeskaya, senior market analyst at London Capital Group, said that if the bill fails it “could let down investors, yet it is worth noting that the major market focus is still on US fiscal plans and the Trump administration could carry on with its expansive fiscal plans regardless of a disappointment on the healthcare bill”.

The Republicans pushed the healthcare bill through initial procedural hurdles in the House, which has moved Trump and GOP leaders towards an uncertain vote showdown, according to the Associated Press.

The procedural vote on Friday was passed by 230 to 194, which included changes to measures that Trump hoped would win over disgruntled Republicans, but it remains uncertain whether the party will have enough votes to push the bill to the final stage.

Ozkardeskaya said that any Trump-positive news would be supportive of the dollar, US yields and banking stocks, given that a large fiscal spending in the US would mean a faster rate tightening from the Federal Reserve.

The dollar rose 0.31% against the pound to 0.8012, was down 0.24% verses the euro to 0.9252 and flat against the yen at 111.

On the data front, Markit's flash US composite output index - which measures both the manufacturing and services sectors - fell to 53.2 in March from 54.1 the month earlier, hitting a six month low.

The services index fell to a six-month low of 52.9 from 53.8 the month before, while the manufacturing purchasing managers' index dropped to 53.4 from 54.2, hitting a five-month low. Analysts had been expecting a reading of 54.2 for services and 54.8 for manufacturing.

In corporate news, Micron Technology surged 9.03% after the company's guidance for the current quarter surpassed analysts' expectations.

Twitter rose 2.5% on news that the social-networking service is exploring a subscription-based service for professionals in order to open up revenue streams.

GameStop tumbled 12.41% after the videogame retailer announced plans to close at least 150 stores.