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US first-quarter economic growth revised lower

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Dollar General beats Q1 sales estimates, shares rise

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Tesla up after report on push to roll out advanced FSD in

China

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Indexes off: Dow 0.87%, S&P 0.32%, Nasdaq 0.51%

(Updated at 12:04 p.m. ET/ 1604 GMT)

By Johann M Cherian and Lisa Pauline Mattackal

May 30 (Reuters) -

U.S. stock indexes fell on Thursday, with a plummeting

Salesforce ( CRM ) weighing on the Dow, while data showing the economy

had grown slower than previously expected in the first quarter

supported bets of rate cuts from the Federal Reserve this year.

The blue-chip Dow hit a four-week low after

Salesforce ( CRM )

plunged

20%. The firm forecast second-quarter profit and revenue

below Street estimates due to weak client spending on its cloud

and enterprise business products.

The broader S&P 500 technology sector also

dropped 1.6%.

A Commerce Department report showed the

economy grew slower

in the first quarter than previously estimated, after

downward revisions to consumer and equipment spending and a key

measure of inflation ticked lower, ahead of Friday's personal

consumption expenditure report for April.

Another set of numbers showed weekly

jobless claims

rose more than expected.

"Investors are shying away from the perceived bulletproof

areas of the markets, which have been information technology and

services, because you've seen economic surprises move to the

downside," said Jeff Schulze, head of economic and market

strategy at ClearBridge Investments.

Areas that would do better in an environment conducive to

the Fed embarking on a cutting cycle in the latter half of this

year are seeing some attention, he said.

U.S. Treasury yields dipped following the report, while

chances for an at least 25-basis-point interest rate reduction

in September edged up to 52%, from 48.7% before the data,

according to the CME Group's FedWatch Tool.

Eight of the 11 S&P 500 sectors edged higher, with

rate-sensitive real-estate stocks adding over 1%. The

small-cap Russell 2000 index also recovered 1.1% from

Wednesday's drop.

Uncertainty over monetary policy, combined with heavy

new Treasury issuance, had pushed bond yields to multi-week

highs earlier in the week, pressuring riskier assets.

The benchmark S&P 500 Index is trading at its

lowest level in two weeks, while the tech-focused Nasdaq

dropped to its lowest in nearly a week.

New York Fed President

John Williams

said the current setting of monetary policy was in the

right place to help inflation get back to 2%, adding that he

doesn't feel an urgency to act on monetary policy.

At 12:04 p.m. the Dow Jones Industrial Average

fell 334.33 points, or 0.87%, to 38,107.21, the S&P 500

lost 17.03 points, or 0.32%, to 5,249.92 and the Nasdaq

Composite lost 85.53 points, or 0.51%, to 16,835.05.

Among others, Tesla gained 0.6% after Reuters

reported the company was preparing to register its 'Full

Self-Driving' software in China.

Retailer American Eagle Outfitters ( AEO ) dropped 3.7%,

posting downbeat quarterly revenue as sticky inflation hurt

demand for its apparel and accessories.

Department-store chain Kohl's slumped 24% after

cutting its annual sales and profit forecasts.

Best Buy jumped 11.3% after beating forecasts for quarterly

profit and predicting higher laptop sales, while HP

gained 17.4% after it posted better-than-expected second-quarter

revenue.

Advancing issues outnumbered decliners by a 2.96-to-1 ratio

on the NYSE and by a 1.87-to-1 ratio on the Nasdaq.

The S&P 500 posted 11 new 52-week highs and nine new lows,

while the Nasdaq Composite recorded 38 new highs and 68 new

lows.