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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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Meta climbs on Bernstein price target boost

(Updated at 4:00 p.m. ET/ 2000 GMT)

By Chuck Mikolajczak

NEW YORK, April 18 (Reuters) - U.S. stocks closed near

the unchanged mark on Thursday, as investors sifted through the

latest corporate earnings, while economic data and comments from

Federal Reserve officials suggested 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.

"I wouldn't be surprised if we go through a fall or spring

where it's an air pocket for a while," said Richard Alt,

Principal and CEO at Carnegie Investment Counsel in Cleveland,

Ohio, referring to a drop in stock prices.

"But the numbers are going to come in with unemployment low

and 70% of this economy consumer spending, if unemployment

continues to be low consumers will continue to spend, they'll

continue to travel, they'll continue to demand services and

that's going to drive earnings and prices up towards the end of

the year."

According to preliminary data, the S&P 500 lost 12.02

points, or 0.24%, to end at 5,010.19 points, while the Nasdaq

Composite lost 82.35 points, or 0.52%, to 15,601.02. The

Dow Jones Industrial Average rose 23.87 points, or 0.06%,

to 37,777.18.

The S&P 500 saw 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 lower 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

after Bernstein raised its price target to $590 from $535.

Earnings season continued to pick up steam with Genuine

Parts ( GPC ) jumping as the top percentage gainer on the S&P

500, after the automotive parts distributor raised its 2024

profit forecast.

Las Vegas Sands ( LVS ) dropped despite beating quarterly

expectations, as multiple brokerages cut their price target on

the stock, citing weakness in its Macau operations.

Equifax ( EFX ) also tumbled as the worst performing S&P 500

stock after the credit ratings firm forecast its second-quarter

revenue below estimates.