*

Indexes down: Dow 1%, S&P 500 1.2%, Nasdaq 1.9%

*

Cisco Systems ( CSCO ) gains after annual revenue forecast hike

*

Disney ( DIS ) warns of long distribution dispute with YouTube TV

(Updates late-morning prices, analyst comment)

By Twesha Dikshit and Purvi Agarwal

Nov 13 (Reuters) - Wall Street's main indexes fell on

Thursday with investors cautious ahead of indications on the

U.S. economy and the monetary policy path after President Donald

Trump signed a bill ending the longest government shutdown in

the country's history.

Markets and the Federal Reserve, which have been reliant on

private sources for clues on economic health in the absence of

official data, still expect to face gaps after the White House

said employment and some inflation reports for October might

never be released.

"There's a lot of uncertainties about the state of the

economy ... what we're going through is a little bit of a

correction in the market in the AI sector and we're seeing

market rotation," said Peter Cardillo, chief market economist at

Spartan Capital Securities in New York.

"What's really weighing on investors now is the state of the

economy and the prospects of a rate cut in December."

At 11:46 a.m. ET, the Dow Jones Industrial Average

fell 487.04 points, or 1.01%, the S&P 500 lost 87.37

points, or 1.28%, and the Nasdaq Composite lost 443.91

points, or 1.90%.

Information technology stocks and communication

services were the biggest drags on the S&P 500.

Heavyweights Nvidia ( NVDA ) and Alphabet lost 4% and

2.5%, respectively. The Magnificent Seven ETF slid

2.3%.

However, Cisco Systems ( CSCO ) rose 4.5% after the company

raised full-year profit and revenue forecasts, betting on demand

for its networking equipment.

Technology and AI names have come under pressure lately,

with the Nasdaq set for its third straight session of declines,

as investors rotated out of pricey tech stocks into

traditionally defensive areas such as healthcare.

The Dow has benefited from the rotation, notching

back-to-back record highs after lagging the S&P and the Nasdaq

this year.

The S&P 500 Value index has gained about 1.6% so far

this week, whereas its growth equivalent has dipped 0.3%.

Walt Disney ( DIS ) fell 8.8%, weighing on the Dow. The

media giant signaled it was grinding for a potentially prolonged

fight with YouTube TV over distribution of its cable channels.

Recently, data from payroll processor ADP showed private

employers shed over 11,000 jobs a week through late October and

Indeed Hiring Lab showed a 16% drop in retail-related job

postings in October from a year ago, pointing to continued

weakness in the labor market.

Several Fed speakers expressed scepticism over another

interest rate cut in December, prompting investors to scale back

bets. Comments from more policymakers will be parsed through the

day.

Traders are currently pricing in an about 49.6% chance of a

25-basis-point rate cut in December, lower than last week's 70%,

according to CME Group's FedWatch tool.

Among others, APA Corp gained 5.8% to top the S&P

500 after a report said Spain's Repsol is considering a

reverse merger of its upstream unit with potential partners,

including the energy producer.

Memory device makers Western Digital ( WDC ) and Sandisk ( SNDK )

dropped 3.1% and 10.7%, respectively, each after

half-yearly results from Japan's Kioxia Holdings.

Declining issues outnumbered advancers by a 2.17-to-1 ratio

on the NYSE and by a 2.65-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and 5 new lows while

the Nasdaq Composite recorded 43 new highs and 132 new lows.