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Intel ( INTC ) falls after disclosing wider losses at foundry

business

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

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Indexes: Dow down 0.1%, S&P 500 up 0.1%, Nasdaq up 0.2%

(Updates to 1610 ET)

By Chibuike Oguh

NEW YORK, April 3 (Reuters) - The S&P 500 and Nasdaq

closed higher on Wednesday after data showing the U.S. services

industry growth slowed further in March, but the advance was

limited after Federal Reserve Chair Jerome Powell indicated a

cut in interest was still not in sight.

Most of the major S&P 500 sectors advanced, led by gains in

energy, materials and communication services

.

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.

"It all has to do with the Fed and market expectations for a

rate cut being pushed off. I think that's really what is

weighing on the market here and has been for at least a couple

of days," said Tim Ghriskey, senior portfolio strategist at

Ingalls & Snyder in New York.

The Dow Jones Industrial Average fell 43.1 points, or

0.11%, to 39,127.14, the S&P 500 gained 5.68 points, or

0.11%, to 5,211.49 and the Nasdaq Composite added 37.01

points, or 0.23%, to 16,277.46.

The U.S. central bank had been expected to start cutting

rates as early as June, but with recent robust economic data,

many in the market have been questioning the timetable.

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.

"There's this kind of yin and yang data scenario where you

have some strong data that has some good-news-is-bad-news feel

to it," said James St. Aubin, chief investment officer at Sierra

Investment Management in California.

Among decliners, Ulta Beauty ( ULTA ) dropped 15.3% after

the beauty retailer gave downbeat forecast at an industry

conference. Shares of e.l.f. Beauty and Coty ( COTY )

also fell.

Also, Intel ( INTC ) shares dropped 8.2% 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.

Volume on U.S. exchanges was 11.03 billion shares, compared

with the 11.76 billion average for the full session over the

last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a

1.66-to-1 ratio; on Nasdaq, a 1.25-to-1 ratio favored advancers.

The S&P 500 posted 33 new 52-week highs and 5 new lows; the

Nasdaq Composite recorded 90 new highs and 124 new lows.