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CrowdStrike ( CRWD ) dips on bleak revenue forecast

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US service sector expands in February; price growth

accelerates

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Indexes: Dow up 0.44%, S&P 500 up 0.28%, Nasdaq up 0.25%

(Updates after market opens)

By Johann M Cherian and Sukriti Gupta

March 5 (Reuters) - Wall Street's main indexes edged up

on Wednesday, after better-than-expected services data allayed

worries of a slowdown in the U.S. economy, while investors

awaited a potential softer approach from President Donald Trump

on trade policy.

An ISM survey showed the services sector activity, which

makes up a large part of the economy, stood in the expansion

territory at 53.5, higher than expectations of 52.6. But a spike

in the price of services inputs tempered optimism.

Investors are also closely monitoring the latest

developments on tariffs. Commerce Secretary Howard Lutnick said

in an interview that Trump was considering granting some relief

on import of items such as cars and autoparts, that comply with

the U.S.-Mexico-Canada free-trade agreement.

The remarks came after Trump escalated a global trade war on

Tuesday as he imposed 25% tariffs on top trade partners, Canada

and Mexico, citing ineffective border controls.

The tariff announcement is expected later in the day.

Carmakers Ford rose 3.2%, General Motors ( GM ) added

4.8% and Tesla gained 1.8%, after logging sharp

declines in the previous session.

Brent Schutte, chief investment officer of Northwestern

Mutual Wealth Management Company, said investors were trying to

gauge the extent to which Trump will go before softening his

tone on the tariff policy.

At 10:04 a.m. ET the Dow Jones Industrial Average

rose 194.14 points, or 0.44%, to 42,715.13, the S&P 500

gained 16.09 points, or 0.28%, to 5,795.70 and the Nasdaq

Composite gained 46.23 points, or 0.25%, to 18,331.40.

Materials stocks led gains among the S&P 500's 11

sectors with a 2% rise, tracking higher metal prices, while

energy stocks fell 1.9%.

The Wall Street had, however, opened flat after ADP data

showed private payrolls increased at the slowest pace in seven

months in February, ahead of Friday's crucial payrolls report.

The U.S. Federal Reserve is also slated to unveil its beige

book at 2:00 p.m. ET, which will throw light on the impact

tariff uncertainty has had on the world's largest economy.

Traders now see the central bank lowering borrowing costs

for the first time this year in June, according to data compiled

by LSEG.

Investors have sold riskier equities over the past few weeks

on fears that Trump's trade policies would amplify inflation

pressures, slow the economy and eat into corporate profits, at a

time when multiple reports have suggested a cooling economy.

The benchmark S&P 500 has fallen over 5.7% from its

record high, while the tech-heavy Nasdaq has dropped

over 9% from its peak.

Chipmaker Intel dropped 2.1% following Trump's

remarks that lawmakers should get rid of a law offering

subsidies to the semiconductor industry.

CrowdStrike ( CRWD ) fell 10.7% after the cybersecurity firm

forecast first-quarter revenue slightly below estimates.

Huntington Ingalls rose 10.3% after Trump said his

administration will create an office of shipbuilding in the

White House and offer tax incentives.

Advancing issues outnumbered decliners by a 2.13-to-1 ratio

on the NYSE, and by a 1.61-to-1 ratio on the Nasdaq.

The S&P 500 posted one new 52-week high and six new lows,

while the Nasdaq Composite recorded 18 new highs and 75 new

lows.

(Reporting by Johann M Cherian and Sukriti Gupta in Bengaluru;

Editing by Shinjini Ganguli)