Benchmark Index Ticks Lower After Two Days of Record Highs

Major U.S. equities indexes were mixed on the first trading day of the third quarter as the Senate narrowly passed a major tax and spending bill that includes significant tax cuts, reductions in health care and food assistance programs, and increases in national security spending.

The S&P 500 slipped 0.1%, failing to build on a two-session stint of record-high closes. Underperformance from the communication and technology sectors pressured the Nasdaq, which fell 0.8%, while the Dow gained 0.9%.

Shares of natural gas processing and transport firm The Williams Companies (WMB) dropped 6.5%, falling the most of any stock in the S&P 500. The downturn comes after the energy infrastructure company announced a shakeup in its executive suite, with Chad Zamarin, currently an executive vice president, stepping up as the new president and CEO, and chief executive Alan Armstrong transitioning to a new role as executive chairman of the board of directors.

Axon Enterprise (AXON) shares declined 6.4% on Tuesday, receding from a record high posted in the prior session. Although the maker of the Taser and other law enforcement equipment posted strong year-over-year revenue growth in the first quarter, the company is navigating cost pressure, with selling, general, and administrative costs also up significantly from a year ago.

Tesla (TSLA) stock lost 5.3% as tensions resurfaced between CEO Elon Musk and President Donald Trump. The president accused Musk of reaping excessive benefits from electric vehicle subsidies, suggesting that the Department of Government Efficiency, formerly led by Musk, should review programs that have subsidized Musk’s business ventures, which include rocket company SpaceX as well as Tesla.

Shares of casino and resort operators pushed higher after regulators in Asian gambling hotspot Macau reported a year-over-year surge in gaming revenue in June. Shares of Las Vegas Sands (LVS) and Wynn Resorts (WYNN) both surged around 8.9%, notching the best performances in the S&P 500. MGM Resorts International (MGM) shares were up 7.3%. All three companies have significant exposure to Macau.

The National Association of Realtors pointed to several provisions in the Senate’s tax and spending bill that could be positive for the housing market, including an extension of the mortgage interest deduction and lower individual tax rates. Meanwhile, mortgage rates remain near their lowest levels in several months, reflecting optimism that the Fed could be on its way to resuming interest-rate cuts. Shares of Builders FirstSource (BLDR), the largest U.S. supplier of residential construction materials, jumped 8.8%.

Packaging Corporation of America (PKG) shares were up 7.6% after the company announced an agreement to buy the containerboard business of the industrial packaging firm Greif for $1.8 billion. The deal includes two containerboard mills, located in Ohio and Virginia, with an annual production capacity of approximately 800,000 tons. Packaging Corporation said it expects synergies stemming from improvements in operational and production efficiency, mill grade optimization, and reduced transport costs.