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Palo Alto rises on upbeat forecast

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Tesla gains as EU cuts planned import tariffs on

China-made EVs

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

trial

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Indexes: Dow off 0.11%, S&P 500 up 0.10%, Nasdaq up 0.09%

(Updated at 09:51 a.m. ET/1351 GMT)

By Shashwat Chauhan and Johann M Cherian

Aug 20 (Reuters) - Wall Street's main indexes were muted

on Tuesday, as investors awaited clues on a September interest

rate cut from the minutes of the Federal Reserve's latest

meeting and a symposium at Jackson Hole later this week.

Markets have been choppy after the S&P 500 and the

Nasdaq extended gains to an eighth straight session on

Monday, 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.

Investors have been worried about a recession after a recent

report pointed to a rise in unemployment in the world's largest

economy, triggering a selloff in stock markets globally earlier

this month.

Traders now look 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.

Atlanta Fed chief Raphael Bostic and Fed Vice Chair for

Supervision Michael Barr will speak later on Tuesday. 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.

"The market has become more positive over the course of the

last week or so, largely driven by the fact that data supports a

soft landing scenario," said Art Hogan, chief market strategist

at B Riley Wealth in Boston.

"We're just getting back to a place where we're more

comfortable with the pace of both economic growth and the

decrease in inflation such that we may well welcome a rate cut

in September."

At 09:51 a.m. the Dow Jones Industrial Average fell

46.91 points, or 0.11%, to 40,849.62, the S&P 500 gained

5.71 points, or 0.10%, to 5,613.96 and the Nasdaq Composite

gained 15.43 points, or 0.09%, to 17,892.20.

Most of the 11 S&P 500 sectors edged higher, led by a 0.7%

gain in the healthcare sector that hit a record high

helped by Eli Lilly's ( LLY ) 4% rise.

The drugmaker's shares got a boost 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.

Among others, Palo Alto Networks ( PANW ) gained 6.2% after

the company forecast fiscal 2025 revenue and profit above

estimates.

Tesla rose 1.1% after the automaker was set to get

a reduced tariff on its China-built cars exported to the

European Union.

Boeing ( BA ) slipped 2.5% 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.

Declining issues outnumbered advancers by a 1.23-to-1 ratio

on the NYSE, and by a 1.27-to-1 ratio on the Nasdaq.

The S&P 500 posted 28 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 47 new highs and 23 new

lows.