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Palo Alto rises on upbeat forecast

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Eli Lilly ( LLY ) rises as weight-loss drug cuts diabetes risk in

trial

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Indexes down: Dow 0.31%, S&P 500 0.25%, Nasdaq 0.39%

(Updated at 11:34 a.m. ET/ 1534 GMT)

By Shashwat Chauhan and Johann M Cherian

Aug 20 (Reuters) - Wall Street's main indexes slipped in

volatile trading on Tuesday, ahead of a symposium at Jackson

Hole later this week and minutes from the Federal Reserve's

meeting last month which could offer clues on a September

interest rate cut.

Seven of the 11 major S&P sectors were trading lower, with

energy taking the worst hit, down 2.4%. Chip stocks too

came under pressure with the Philadelphia Semiconductor index

down 1.1%.

Traders are looking forward to any hints from Powell of a

rate cut at the upcoming Fed meeting in September when he

delivers his speech at the annual economic symposium in Jackson

Hole on Friday.

"We expect Powell to set the table for a cut next month

whilst stressing the data-dependent nature of the Fed's monetary

policy decisions and pushing back against any sort of

pre-commitment to an aggressive easing path," Win Thin, managing

director, global head of markets strategy at Brown Brothers

Harriman wrote in a note.

Atlanta Fed chief Raphael Bostic and Fed Vice Chair for

Supervision Michael Barr will speak later on Tuesday, while

minutes from the Fed's last policy meeting are due on Wednesday.

Odds for the Fed cutting interest rates by 25 basis points

(bps) in September stand at 73.5%, compared with a near-even

split between a 50 and 25 bps cut seen a week ago, according to

the CME FedWatch Tool.

On Monday, the S&P 500 and the Nasdaq

extended gains to an eighth straight session, their longest

winning streak so far this year, after a recent set of data

raised optimism about the economic health and boosted

expectations of a rate cut when the Fed meets in September.

The S&P 500 is expected to trade near current record levels

at year-end, according to a Reuters poll of market strategists

that suggests the AI rally is losing steam as investors wait for

a widely-expected U.S. central bank interest rate cut next

month.

At 11:34 a.m. ET, the Dow Jones Industrial Average

fell 127.71 points, or 0.31%, to 40,768.82, the S&P 500

lost 14.46 points, or 0.25%, to 5,594.04 and the Nasdaq

Composite lost 69.11 points, or 0.39%, to 17,807.67.

Eli Lilly ( LLY ) added 2.8% after its weight-loss drug cut

the risk of developing type 2 diabetes by 94% in pre-diabetic

adults who were overweight or obese after three years of weekly

injections.

Palo Alto Networks ( PANW ) gained 8.5% after the company

forecast fiscal 2025 revenue and profit above estimates.

Boeing ( BA ) slipped 5% after the airline maker stopped

test flights of its 777-9 models as it awaits certification

after a component between engine and airplane structure failed

to perform during a maintenance check.

Lowe's fell close to 1% after the company cut its

annual profit and sales forecasts, echoing bigger rival Home

Depot's ( HD ) concerns of a slim chance of a recovery in home

improvement demand this year.

Declining issues outnumbered advancers by a 1.96-to-1 ratio

on the NYSE, and by a 2.2-to-1 ratio on the Nasdaq.

The S&P 500 posted 36 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 59 new highs and 48 new

lows.