(Updates with opening of U.S. markets)
* Trump agenda suffers blow after healthcare bill collapse
* Dollar slips, YTD losses over 7 pct; U.S. yields slide
* Mixed earnings weigh on U.S., European stock markets
* Oil climbs as firm demand absorbs ample supply
By Lewis Krauskopf
NEW YORK, July 18 (Reuters) - The dollar stumbled on Tuesday and U.S. Treasury yields fell after a fresh setback to U.S. President Donald Trump's domestic agenda, while a mixed batch of earnings reports left U.S. and European stock indexes lower.
The collapse of his fellow Republicans' push to repeal and replace Obamacare with their own healthcare bill in the U.S. Senate again raised doubts in financial markets about Trump's ability to enact tax cuts and infrastructure spending. dollar .DXY fell 0.6 percent against a basket of key currencies, setting a 10-month low and extending its 2017 decline to more than 7 percent. pushes out the rest of the agenda. It's hard to do a tax reform in the style that it was campaigned on," said Art Hogan, chief market strategist at Wunderlich Securities in New York. "The healthcare hurdle pushes everything in Trump's agenda to 2018."
The Dow Jones Industrial Average .DJI fell 94.98 points, or 0.44 percent, to 21,534.74, the S&P 500 .SPX lost 2.55 points, or 0.10 percent, to 2,456.59.
The Nasdaq Composite .IXIC added 7.12 points, or 0.11 percent, to 6,321.55. NFLX.O shares soared after the streaming television company's strong customer growth, boosting the Nasdaq. of Goldman Sachs (NYSE:GS) GS.N and Bank of America (NYSE:BAC) BAC.N fell after those banks' respective quarterly reports, and weighed on bank indexes in the United States .SPXBK and Europe SX7E . HOG.N shares tumbled after the motorcycle maker's weak forecast. Europe, the pan-European FTSEurofirst 300 index .FTEU3 lost 1.09 percent. Sweden's Ericsson (BS:ERICAs) ERICb.ST tumbled after a worse-than-expected second-quarter loss. gauge of stocks across the globe .MIWD00000PUS shed 0.05 percent after touching an all-time high on Monday.
In currencies, the euro EUR= was up 0.84 percent to $1.1574 against the dollar. Aside from the Trump agenda setback, there are increasing doubts about further near-term rate hikes by the Federal Reserve.
"The setback for Trump is a setback for the U.S. dollar," said Kathy Lien, managing director at BK Asset Management in New York. "I think that really casts doubt on the Trump administration's broader strategies."
Expectations for the Fed hiking interest rates this year have been pushed back to the fourth quarter, the latest Reuters poll of economists showed. A poll conducted last month predicted the Fed would raise rates by September. anything that comes along at the moment just corroborates the market's negative attitude on the dollar," said Neil Mellor, senior FX strategist with Bank of New York Mellon (NYSE:BK) in London.
"There's just not enough inflation at the moment. And anything like this (defeat for Trump) is liable to push it lower."
U.S. Treasury yields fell after the latest political drama in Washington, while more data pointed to benign inflation with a drop in import prices for a second straight month. 10-year notes US10YT=RR last rose 12/32 in price to yield 2.2678 percent, from 2.309 percent late on Monday.
Yields across the globe rose sharply after Trump won the U.S. election in November on promises for tax reforms and infrastructure investment that were expected to boost growth and inflation in the world's largest economy.
Oil prices rose as demand soaked up some of the surplus supplies from OPEC and the United States. crude CLcv1 rose 0.54 percent to $46.27 per barrel and Brent LCOcv1 was last at $48.74, up 0.66 percent on the day.
Copper CMCU3 rose 0.18 percent to $6,006.50 a tonne. Spot gold XAU= added 0.7 percent to $1,241.96 an ounce. USD INDEX
http://reut.rs/2tB9rcc ANALYSIS-After throwing in the kitchen sink, what's a central bank to do?
World FX rates in 2017
http://tmsnrt.rs/2egbfVh Global assets in 2017
http://reut.rs/1WAiOSC Global bonds dashboard
http://tmsnrt.rs/2fPTds0 Global market cap
http://reut.rs/2mcp7T1 Emerging markets in 2017
http://tmsnrt.rs/2ihRugV
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