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Fed officials signal pause on rate cuts

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Initial jobless claims unchanged from prior week

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Indexes: Dow up 0.03%, S&P down 0.19%, Nasdaq 0.38%

(Updated at 2:20 p.m. ET/ 1830 GMT)

By Chuck Mikolajczak

NEW YORK, April 18 (Reuters) - U.S. stocks dipped on

Thursday, as investors waded through the latest batch of

corporate earnings, while economic data and comments from

Federal Reserve officials indicated the central bank was

unlikely to cut interest rates in the near future.

Economic data showed that the labor market remained

resilient, as weekly initial unemployment claims were unchanged

from the prior week at 212,000 while a gauge of manufacturing in

the mid-Atlantic region rose to a two-year high.

The solid labor market, recent reading showing sticky

inflation, and comments from Fed officials including Chair

Jerome Powell have led markets to back off expectations the

central bank would cut interest rates by at least 25 basis

points (bps) at its June meeting.

"You got the unemployment numbers today and they're not

showing that the labor market is, anywhere near going from being

as tight as it is, there's no loosening the labor market that

you can see," said Tom Hainlin, senior investment strategist at

U.S. Bank Wealth Management in Minneapolis.

"Economic data just says that the economy is still in a good

place and the reason for the Fed keeping rates high is positive

growth, so you're getting this whipsaw in terms of what do you

want to own."

The Dow Jones Industrial Average rose 5.94

points, or 0.02%, to 37,758.56, the S&P 500 lost 9.45

points, or 0.19%, to 5,012.82 and the Nasdaq Composite

lost 59.14 points, or 0.38%, to 15,624.23.

The S&P 500 is on track for its fifth straight session

of declines, as equities have struggled recently following a

five-month rally that started in November in part due to

expectations the Fed was likely to cut interest rates in the

first half of the year.

Comments on Thursday from Fed officials reiterated the

lack of urgency to cut rates, as New York Federal Reserve

President John Williams cited the robust economy while Atlanta

Federal Reserve President Raphael Bostic he is "comfortable

being patient" as inflation is returning to the Fed's 2% target

more slowly than expected.

Market expectations for a rate cut of at least 25 bps in

June have shrunk to 15.2%, according to CME's FedWatch Tool,

with July standing at 41.5%. down from 48.4% a week ago.

On the plus side, stock Meta Platforms ( META ) rose

2.04% as the biggest boost to the S&P 500 after Bernstein raised

its price target to $590 from $535.

Earnings season continued to pick up steam with Genuine

Parts ( GPC ) jumping 11.75% as the top percentage gainer on the

S&P 500, after the automotive parts distributor raised its 2024

profit forecast.

Las Vegas Sands ( LVS ) lost 8.96% despite beating

quarterly expectations, as multiple brokerages cut their price

target on the stock, citing weakness in its Macau operations.

Equifax ( EFX ) tumbled 9.12% as the worst performing S&P

500 stock after the credit ratings firm forecast its

second-quarter revenue below estimates.

Declining issues outnumbered advancing ones by a 1.1-to-1

ratio on the NYSE and by a 1.11-to-1 ratio on the Nasdaq.

The NYSE recorded 27 new highs and 80 new lows, while the

Nasdaq recorded 21 new highs and 212 new lows.