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Trump and Ryan fail to deliver on health-care, and stocks tank

IN THE NEWS TODAY

U.S. stock futures were sharply lower this morning as investors took a more dimmer view of the House GOP leadership's withdrawal right before Friday's close of their health-care bill. (CNBC)

With the Obamacare replacement failure raising questions about the rest of President Donald Trump's agenda, the Dow was on a seven-session losing streak. (CNBC)

The dollar index hit a four-month low this morning, with analysts blaming a confidence knock after Trump failed to usher the health bill through the GOP-controlled Congress. (CNBC)

Trump is lashing out at the conservative House Freedom Caucus, arguing Democrats were "smiling." House Speaker Paul Ryan, who largely authored the health measure, found his leadership under pressure. (CNBC)

White House Budget Director Mick Mulvaney, a founding member of the Freedom Caucus, chalked up the health-care failure to Washington's being "more rotten" than Trump thought. (NBC News)

Asked whether repealing and replacing Obamacare was still a priority for Trump's first 100 days, Mulvaney said, "No," reiterating the White House is moving on to "other things," such as tax cuts. (NBC News)

Trump is expected to appoint son-in-law Jared Kushner to lead a new White House initiative to fix government with business ideas. The team is working with Apple's Tim Cook and Tesla's Elon Musk. (Washington Post)

A court in China, overturning a prior ruling, said Apple's iPhone 6 and iPhone 6 Plus do not infringe on exterior design patents, which had been held by a now defunct local manufacturer. (Reuters)

Amazon (AMZN) has a challenger in its reported bid to buy Mideast online retailer Souq.com. Dubai-based shopping center operator Emaar Malls is offering $800 million for Souq.com. (Reuters)

Amazon is said to be exploring the idea of creating stores to sell furniture and home appliances, using virtual reality to allow customers to see what the wares would look like in their homes. (NY Times)

Uber has suspended its self-driving vehicles as the ride-hailing firm investigates an accident in which a car in autonomous mode, with safety-driver but no passengers, collided with a motorist in Arizona. (Recode)

Advertisers are demanding from Alphabet's (GOOGL) Google prime space at discounted prices, after this month's revelation that many brands had appeared next to extremist content on YouTube. (FT)

Disney's (DIS) live-action "Beauty and the Beast" topped the domestic box office for a second weekend, with $88.3 million. So far, the movie has made $317 million in North America and $690 million worldwide. (AP)

BY THE NUMBERS

Health-care stocks from insurers to drugmakers to hospital groups could see outsized reactions today in conjunction with the broader market on the Obamacare replacement failure.

There are no government economic reports today. But two Fed officials may provide insight on growth. Chicago Fed President Charles Evans speaks at 1:15 p.m. ET. Dallas Fed President Rob Kaplan speaks at 6:30 p.m. ET.

STOCKS TO WATCH

Dow Chemical (DOW) and DuPont (DD) have received European Commission approval for their planned merger, with some divestment conditions. The deal still needs U.S. approval, but many analysts have considered Europe's approval the most difficult hurdle.

Barclays (BCS) sold $1.6 billion of credit-card balances owed by mostly near-prime and subprime borrowers to privately held personal-loan firm Credit Shop, according to the Wall Street Journal.

MoneyGram (MGI) has struck a confidentiality agreement with rival money transfer company Euronet (EEFT), which has made an unsolicited bid for MoneyGram for $15.20 per share.

UPS (UPS) was found to have illegally shipped millions of cigarettes to New York addresses from Native American reservations. A judge ruled the state and the city were entitled to damages due to unpaid taxes.

Viacom (VIAB) could rise 40 percent this year, according to Barron's, which said the new CEO could boost the media giant's fortunes with a focus on the Paramount Pictures studio and a handful of its cable networks.

Snap (SNAP) was rated "overweight" in new coverage at Morgan Stanley, noting the Snapchat parent's robust engagement with hard-to-reach millennial users.

Starbucks (SBUX) was rated "outperform" in resumed coverage at Telsey Advisory Group, based on the coffee chain operator's plans to maintain significant growth.

WATERCOOLER

An influential Twitter user sparked an internet firestorm, reporting that girls in leggings weren't allowed on a United flight. The airline said the girls were "United pass riders" and subject to a stricter dress code. (Recode)