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Intel ( INTC ) down after revealing deepening losses at chip-making

unit

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Ulta Beauty ( ULTA ) drops as CEO warns of sluggish Q1 demand

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Indexes up: Dow 0.01%, S&P 500 0.28%, Nasdaq 0.48%

(Updates to 1430 ET)

By Chibuike Oguh

NEW YORK, April 3 (Reuters) - U.S. stocks rose on

Wednesday, buoyed by data showing U.S. services industry growth

slowed further in March, even as Federal Reserve Chair Jerome

Powell reiterated that the central bank has time to deliberate

over its first interest rate cut this year.

Nine out of the 11 major S&P 500 sectors were higher,

led by energy, which was up 0.7%.

Powell reaffirmed in a speech on Wednesday that the Fed will

stick to its wait-and-see approach as it considers when to start

cutting rates given the continued strength of the U.S. economy

and recent higher-than-expected inflation data.

Earlier on Wednesday, data from the Institute for Supply

Management showed that non-manufacturing PMI declined for the

second straight month to 51.4 in March, down from 52.6 in

February, and weaker than analysts had expected, according to a

Reuters poll.

A reading above 50 indicates growth in the services

industry, which accounts for more than two-thirds of the

economy, and the data still indicates the U.S. economy continues

to expand, though at a moderate pace.

"Markets started the day on a positive note ahead of Powell,

and with the market still pricing in three rate cuts for the

year, he kind of confirmed that he still sees rates being cut

this year," said Joshua Wein, portfolio manager at Hennessy

Funds in North Carolina.

At 02:28 p.m. the Dow Jones Industrial Average

rose 4.81 points, or 0.01%, to 39,175.78, the S&P 500

gained 14.95 points, or 0.29%, to 5,220.76 and the Nasdaq

Composite gained 77.88 points, or 0.48%, to 16,318.33.

Traders are pricing in a 57% chance the Fed will cut

interest rates by 25 basis points in June, according to

CMEGroup's FedWatch tool, down from about 64% a week ago.

In separate comments to CNBC on Wednesday, Atlanta Fed

President Raphael Bostic said rates should likely not be reduced

until the fourth quarter of this year.

Among decliners, Ulta Beauty ( ULTA ) was down 14.8% after

the beauty retailer gave downbeat forecast at an industry

conference. Shares of e.l.f. Beauty fell 10.2%, while

Coty ( COTY ) dropped 6%.

Also, Intel ( INTC ) fell 7.5% after the chipmaker disclosed

$7 billion in operating losses for its foundry business in 2023,

steeper than the $5.2 billion reported the year before.

Advancing issues outnumbered decliners by a 1.81-to-1

ratio on the NYSE. There were 264 new highs and 54 new lows on

the NYSE. On the Nasdaq, 2,457 stocks rose and 1,716 fell as

advancing issues outnumbered decliners by a 1.43-to-1 ratio.

The S&P 500 posted 32 new 52-week highs and 4 new lows while

the Nasdaq recorded 105 new highs and 115 new lows.