(Recasts with preliminary close of trading)
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Healthcare sector slides; Pfizer's ( PFE ) forecast disappoints
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US job growth rebounded in November; unemployment rate at
4.6%
By Abigail Summerville and Johann M Cherian
Dec 16 (Reuters) - Wall Street's main indexes pared some
losses on Tuesday afternoon with the Nasdaq closing up, and the
S&P 500 and the Dow closing lower, impacted by declines in
healthcare and energy stocks. Investors evaluated delayed
economic data to gauge the Federal Reserve's monetary policy
outlook for next year.
A Labor Department report showed nonfarm payrolls increased by
64,000 jobs in November following a decline in October because
of government spending cuts. But the unemployment rate rose to
4.6% in November against the backdrop of economic uncertainty
stemming from President Donald Trump's aggressive trade policy.
A separate report on Tuesday showed retail sales were flat
in October, just below an estimate of economists polled by
Reuters calling for a rise of 0.1%. Analysts flagged the
likelihood of the figures being distorted by slow data
collection due to a recent government shutdown.
"This is all fairly old news at this point. Most data points
are being viewed in the lens of what they are going to do to the
Fed, and the data you got today isn't likely to move the
needle," said Mark Hackett, chief market strategist at
Nationwide.
After Tuesday's data, investors are pricing in interest rate
cuts of at least 58 basis points next year - more than double
the 25 bps signaled by the Fed last week.
Trump is set to interview Fed Governor Christopher Waller on
Wednesday for the Federal Reserve chair position, the Wall
Street Journal reported Tuesday afternoon.
According to preliminary data, the S&P 500 lost 16.42
points, or 0.24%, to end at 6,800.09 points, while the Nasdaq
Composite gained 54.05 points, or 0.23%, to 23,111.46.
The Dow Jones Industrial Average fell 302.67 points, or
0.63%, to 48,113.89.
Crude prices hit their lowest level since 2021.
"The crude move today is the one that stands out. Everything
else seems like lethargy among investors and just a modest
technical move to the sidelines," Hackett said.
In health stocks, Pfizer ( PFE ) fell after the drugmaker
forecast a challenging 2026 due to weaker sales of COVID-19
products and squeezed margins. Humana slipped after the
health insurer announced undefined leadership changes.
The S&P 500 and the Nasdaq hovered near their three-week
lows as persistent uncertainty over rate cuts and concerns about
lofty tech valuations continued to weigh on market sentiment.
Among other stocks, B. Riley jumped after the
investment bank reported a profit for the second quarter,
compared with a year-ago loss in an overdue quarterly filing.
Comcast ( CMCSA ) rose after CNBC financial journalist David
Faber speculated about potential involvement by an activist
investor.
Separately, a Reuters report said Nasdaq submitted
paperwork with the U.S. Securities and Exchange Commission to
roll out round-the-clock trading of stocks, months after the New
York Stock Exchange and Cboe Global Markets announced similar
plans.