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Salesforce drops on co-CEO exit plan
Dollar General falls on slashing annual profit view
U.S. manufacturing shrinks for first time in 2-1/2 years
Indexes end: S&P 500 -0.08%, Nasdaq +0.13%, Dow -0.56%
Dec 1 (Reuters) - Wall Street ended mixed on Thursday as
a selloff in Salesforce weighed on the Dow, while traders
digested U.S. data that suggested the Federal Reserve's interest
rate hikes are working.
On Wednesday, the S&P 500 surged over 3% on optimism the Fed
might moderate its campaign of interest rate hikes.
U.S. manufacturing activity shrank in November for the first
time in 2-1/2 years as higher borrowing costs weighed on demand
for goods, data showed, evidence the Fed's rate hikes have
cooled the economy.
The personal consumption expenditures (PCE) price index rose
0.3%, the same as in September, and over the 12 months through
October the index increased 6.0% after advancing 6.3% the prior
Excluding the volatile food and energy components, the PCE
price index rose 0.2%, one-tenth less than expected, after
gaining 0.5% in September.
"On a normal day, the package of data this morning would be
pretty risk-on, but after the rally yesterday, I think it's not
quite good enough to push another leg higher," said Ross
Mayfield, an investment strategy analyst at Baird.
Wednesday's rally drove the S&P 500 index above its
200-day moving average for the first time since April after Fed
Chair Jerome Powell said it was time to slow the pace of
interest rate hikes.
Traders now see a 79% chance the Fed will increase its key
benchmark rate by 50 basis points in December and a 21% chance
it will hike rates by 75 basis points.
Salesforce Inc tumbled 8.3% after the software maker
said Bret Taylor would step down as co-chief executive officer
Dollar General Corp fell 7.5% after the discount
retailer cut its annual profit forecast, while Costco Wholesale
Corp dropped 6.6% after the membership-only retail
chain reported slower sales growth in November.
The S&P 500 declined 0.08% to end the session at 4,076.79
The Nasdaq gained 0.13% to 11,482.45 points, lifted by gains
of over 1% each in Nvidia and Facebook-owner Meta
Dow Jones Industrial Average declined 0.56% to 34,396.53
points, pulled lower by Salesforce.
Of the 11 S&P 500 sector indexes, seven declined, led lower
by financials, down 0.71%, followed by a 0.47% loss in
A U.S. Labor Department report on Thursday showed initial
claims for state unemployment benefits dropped 16,000 to a
seasonally adjusted 225,000 for the week ended Nov. 26.
Investors now await nonfarm payrolls data on Friday for
clues about how rate hikes have affected the labor market.
With a month left in 2022, the S&P 500 is down about 14%
year to date, and the Nasdaq has lost about 27%.
Advancing issues outnumbered falling ones within the S&P
500 by a 1.1-to-one ratio.
The S&P 500 posted 32 new highs and no new lows; the
Nasdaq recorded 118 new highs and 91 new lows.
Volume on U.S. exchanges was relatively heavy, with 11.7
billion shares traded, compared to an average of 11.3 billion
shares over the previous 20 sessions.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru,
and by Noel Randewich in Oakland, Calif.; Editing by Shounak
Dasgupta and David Gregorio)