Investing.com - The Dow fell for a second-straight day Wednesday as investor optimism on trade cooled and healthcare was led lower by a slump in Mylan.
The Dow Jones Industrial Average fell 0.28%, or about 73 points, but was down as much as 180 points at session lows. The S&P 500 lost 0.05%, while the Nasdaq Composite rose 0.07%.
U.S. Trade Representative Robert Lighthizer cooled investor hopes of the U.S. and China reaching a trade deal sooner rather later, suggesting there was still more work done.
"Let me be clear," Lighthizer told the House Ways and Means Committee. "Much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached."
The somewhat somber tone on trade comes just days after the market participants cheered news that President Donald Trump pushed back a deadline on imposing additional tariffs on China that were due to go into effect on Friday.
Semiconductor stocks, some of which have a sizable exposure to China, tripped up on the Lighthizer's remarks.
But Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), both viewed as barometers of international trade, ended the day higher, underpinning industrials.
Healthcare stocks, meanwhile, struggled to get shake off a slump in the Mylan, keeping a lid on gains in the broader market.
Mylan (NASDAQ:MYL) fell 15% after the drugmaker reported fourth-quarter earnings that missed estimates provided by Investing.com. Guidance also fell short of the expectations.
WellCare Health Plans (NYSE:WCG) and UnitedHealth Group (NYSE:UNH) closed down sharply.
But it wasn't all doom and gloom as Best Buy (NYSE:BBY) served up fourth-quarter results that beat on both the top and bottom lines, triggering a wave of green for retailers.
Energy stocks also helped the broader market off session lows on rising oil prices thanks to data showing domestic crude supplies fell much more than expected last week.
Federal Reserve Chairman Jerome Powell was also focus and reiterated his upbeat assessment of the economy, while signaling the central bank was looking to stop shrinking its balance sheet later this year.
"We’ve worked out the framework of a plan, that we hope to be able to announce soon, that will light the way all the way to the end of balance sheet normalization and that will result in the end of asset runoff sometime later this year," Powell said.
Geopolitical uncertainty also weighed on sentiment in early trade following rising tensions between India and Pakistan. Pakistan said it shot down two Indian jets and carried out air strikes in Kashmir after India launched an air strike inside Pakistani territory.
Trump and North Korea's Kim Jong Un got their second summit underway, with the U.S. president hailing his counterpart as a "great leader" and claiming North Korea has "tremendous" economic potential. Kim also offered a warm embrace, calling Trump's decision to meet with him "courageous."
Top S&P 500 Gainers and Losers Today:
Best Buy (NYSE:BBY), Campbell Soup (NYSE:CPB) and TJX Companies (NYSE:TJX) were among the top S&P 500 gainers for the session.
Mylan (NASDAQ:MYL), UnitedHealth Group (NYSE:UNH) and Western Digital (NASDAQ:WDC) were among the worst S&P 500 performers of the session.