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Tech Names Lead Mixed Finish, Transports Slide After Close

Stocks stumbled to a mixed close in above-average trade Tuesday as earnings news and concerns over missteps by lawmakers in Washington, D.C., kept the session off balance.

The Dow Jones industrial average slipped 0.3%, struggling against Goldman Sachs' (GS) 3% decline — which followed Goldman's second-quarter results before the starting bell. The S&P 500 managed a one-point gain, up a fraction.

The Nasdaq Composite turned in a 0.5% win, as Netflix (NFLX) held the index's head above water, with assists from JD.com (JD), PayPal (PYPL) and Tesla (TSLA).

The Senate found its effort at health care reform roadblocked by internal GOP resistance Monday night, and plan B — to simply repeal the Affordable Care Act and start from scratch — ran into resistance of its own later in the day. Stocks have generally shown sensitivity to indications that the Trump administration may not enact pledges on items such as health care, tax and banking reform. Stock futures had slumped overnight and remained weak before earnings reports begin to hit the wire early Tuesday.

There was also weak economic news out of the real estate sector, with the National Association of Home Builders reporting its builder confidence survey slumped to 64 in July, down from June's reading of 69 and the lowest tally since November.

Netflix Kicks Up: PayPal, JD.com, Solar Stocks Shine

Netflix scored a gap-up breakout, despite reporting mixed second-quarter results late Monday. The company reported adding 5.2 million new subscribers during the quarter, far above consensus views for 3.2 million. When the stock opened, it was extended above a standard flat-base buy point of 166.97. But the wide gap-up move enabled a technical buy range beginning roughly at the stock's 176.12 opening price. That left shares near the top of their buy range at the end of the session.

PayPal rose more than 2% in quiet trade after a price hike, to 64 from 60, from KeyBanc Capital Markets. PayPal is extended after clearing a 55.24 flat-base buy point

JD.com kept up its recent volatility, punching up more than 3% in light trade. The stock has been trading wide and loose, but hung up by resistance near 44 since early June.

Solar stocks were among the day's best performers, with SunPower (SPWR) beaming up 7% on news that utility Oklahoma Gas & Electric Energy had committed to a 10-megawatt solar facility in Covington, Okla. The gain put SunPower 90% above its March low.

Other Solar plays also responded, with China's JinkoSolar (JKS) and Daqo New Energy (DQ) up 7% apiece, and First Solar (FSLR) notching a 3% gain. The solar energy group has outperformed all other industries over the last four- and eight-week periods.

Office and retail REIT Vornado Realty Trust (VNO) clocked the S&P 500's worst loss, down 20% after spinning off a portion of its New York assets in combination with Washington D.C.-based assets from privately held JBG Smith. The new issue, JBG Smith Properties (JBGS), dipped 0.2% Tuesday.

Also at the bottom of the S&P 500, Harley-Davidson (HOG) dropped 6% after reporting mixed Q2 results. Chipotle Mexican Grill (CMG) also took a 6% dunking, despite upgrades from Standpoint and Maxim Group, as investors flinched at fresh reports of customers falling ill after eating at a Chipotle's restaurant in Sterling, Va.

After the close, United Airlines (UAL) dropped 3% after reporting its second-quarter results, railroad CSX (CSX) skidded 2% lower and IBM (IBM) shed more than 1%.

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