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CVS gains after report Glenview to meet with executives

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Focus on Powell comments at conference

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Indexes: Dow down 0.7%, S&P 500 off 0.4%, Nasdaq down 0.5%

(Updates to 2:30 p.m. ET/1830 GMT)

By Caroline Valetkevitch

NEW YORK, Sept 30 (Reuters) -

U.S. stocks extended losses on Monday after Federal Reserve

Chair Jerome Powell said the U.S. central bank is not in a hurry

to lower interest rates and he sees two more cuts, totaling 50

basis points, this year as a baseline if the economy evolves as

expected.

Powell

, at a National Association for Business Economics

conference in Nashville, Tennessee, also said recent revisions

to data on economic growth, savings rates and personal income

had removed some "downside risks" the Fed had been focused on.

The Fed earlier this month began a new easing cycle with

a large 50 basis point rate cut.

"He basically has underscored that the Fed remains data

dependent but nonetheless - the way I'm interpreting it - he's

looking toward an economy that remains solid and a labor market

that remains solid and inflation coming down," said Quincy

Krosby, chief global strategist, LPL Financial in Charlotte,

North Carolina.

The S&P 500 was little changed just before Powell's

remarks.

The Dow Jones Industrial Average fell 305.54

points, or 0.72%, to 42,007.46, the S&P 500 lost 24.83

points, or 0.43%, at 5,713.34 and the Nasdaq Composite

dropped 94.61 points, or 0.52%, to 18,024.99.

Key economic reports due this week include monthly

payrolls on Friday.

CVS Health ( CVS ) rose 2% after a report showed hedge fund

Glenview Capital Management will meet top executives at the

healthcare company to propose ways to improve operations.

(Additional reporting by Johann M Cherian and Purvi Agarwal in

Bengaluru; Editing by Maju Samuel and Richard Chang)