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Google-parent Alphabet down on potential DOJ action
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Boeing ( BA ) falls after talks with union halted
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Fed minutes due at 2:00 p.m. ET
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Indexes: Dow up 0.35%, S&P 500 flat, Nasdaq down 0.25%
(Updated at 9:45 a.m. ET/1345 GMT)
By Lisa Pauline Mattackal and Pranav Kashyap
Oct 9 (Reuters) -
The main indexes were mixed in choppy trading on Wednesday
as investors awaited the minutes of the Federal Reserve's latest
meeting, while Alphabet shares dipped after the U.S. said it was
considering breaking up Google.
Shares of Alphabet were down 0.2% in early trading
after the U.S. Department of Justice said it may ask a judge to
force Google to divest parts of its business, including the
Chrome browser and Android operating system, to curtail its
search monopoly.
The Dow Jones Industrial Average rose 148.23 points,
or 0.35%, to 42,228.60, the S&P 500 gained 0.51 points,
or 0.01%, to 5,751.59 and the Nasdaq Composite lost
45.09 points, or 0.25%, to 18,137.82, lagging the other two main
indexes.
"(This is) just a reflection of how super-sized Big Tech has
become. Any uncertainty there will feature into the rest of the
market," said Ben Laidler, head of equity strategy at Bradesco
BBI.
Trading has been choppy this week, with investors
adjusting their rate-cut expectations, seeking new catalysts for
a clearer market direction. Their attention will now turn to
crucial inflation data on Thursday and the upcoming
third-quarter corporate earnings season.
Minutes from the Fed's September meeting, when policymakers
kicked off monetary policy easing with a 50-basis-point rate
cut, are due at 2:00 p.m. ET.
"We expect the FOMC minutes and tomorrow's CPI to be
reassuring and calm these market nerves around the ability of
the Fed to keep cutting interest rates," Laidler said.
Commentary from a number of Fed officials including Philip
Jefferson and Thomas Barkin are also expected through the day.
Investors are overwhelmingly pricing in a 25-basis-point
reduction in borrowing costs at the Fed's November meeting, with
some now seeing a slight chance the central bank will keep rates
on hold, according to the CME FedWatch tool.
Prior to the release of strong employment data last week,
markets were leaning towards an outsized 50-bps cut in November.
Among single stocks, Boeing ( BA ) lost 3.1% after talks
between the company and its key manufacturing union broke down.
Shares of Arcadium Lithium ( ARLTF ) soared 30.5% after Rio
Tinto said it would acquire the miner for $6.7 billion.
Shares of Goldman Sachs rose 1.1%, helping the Dow
outperform other indexes, while Financials stocks were
the biggest S&P 500 sector gainers.
U.S.-listed shares of Chinese firms dropped as investors
continued to question if China would announce new stimulus
measures.
Alibaba Group fell 2.3%, PDD Holdings ( PDD ) lost
2.7% and JD.Com dropped 3.5%.
Additionally, investors were keeping a watch on the
potential impact from Category 5 Hurricane Milton as well as the
escalating conflict in the Middle East.
Declining issues outnumbered advancers by a 1.04-to-1
ratio on the NYSE, and by a 1.3-to-1 ratio on the Nasdaq.
The S&P 500 posted 20 new 52-week highs and two new
lows, while the Nasdaq Composite recorded 29 new highs and 51
new lows.