*

Warner Bros Discovery ( WBD ) gains on plan to split TV, streaming

units

*

Adobe drops after forecasting 2025 revenue below estimates

*

Centene ( CNC ) rises after guiding 2025 profit above expectations

*

Indexes down: Dow 0.33%, S&P 500 0.24%, Nasdaq 0.23%

(Updates with investor comment in paragraphs 4-5, share prices

throughout)

By Echo Wang

NEW YORK, Dec 12 (Reuters) - Wall Street edged lower on

Thursday as investors assessed key economic data ahead of the

Federal Reserve's meeting next week.

The Nasdaq surged past the 20,000 mark for the first time

on Wednesday, fueled by a relentless rally in technology stocks.

The S&P 500 climbed to its highest level in nearly a week, as an

inflation report aligning with expectations cemented bets on a

25-basis-point rate cut at the Fed's Dec. 17-18 meeting.

Initial claims for U.S. unemployment benefits unexpectedly

climbed last week, raising concerns over labor-market

resilience. U.S. producer prices rose more than forecast in

November, though a moderation in service costs pointed to a

continuation of the broader disinflationary trend.

"Investors are just trying to suss out what is the Fed going to

do next week? Is inflation really going to be a problem and the

Fed has to really slow its role on rate cuts, or can they get

there?" said Rob Haworth, senior investment strategist at U.S.

Bank Wealth Management in Seattle.

Haworth added there was profit-taking after the Nasdaq touched

an all-time high on Wednesday.

Trader bets on the cut next week stand at over 98%, according to

CME's FedWatch Tool. However, they indicate expectations of a

pause in January after several Fed officials last week urged

caution over the pace of monetary policy easing as the economy

remained resilient.

At 1:50 p.m. EST (1950 GMT) the Dow Jones Industrial Average

fell 144.71 points, or 0.33%, to 44,004.27, the S&P 500

lost 14.59 points, or 0.24%, to 6,069.60 and the Nasdaq

Composite lost 46.62 points, or 0.23%, to 19,988.28.

Eight of the 11 major S&P sub-sectors were trading lower, with

the healthcare sector at the bottom with a 0.6%

decline.

Megacap and growth stocks showed a mixed performance, with

Nvidia ( NVDA ) slipping 0.78%, while Microsoft ( MSFT ) rose

1.12%.

Adobe plunged 13.27% after the Photoshop maker forecast

fiscal 2025 revenue below Wall Street expectations, weighing on

the broader technology sector.

Wall Street's main indexes have hit record highs multiple times

this year, fueled by a rally in heavyweight tech stocks that

capitalized on enthusiasm surrounding artificial intelligence

and the Fed's interest-rate cuts.

U.S. equities concluded a strong November following Donald

Trump's presidential election victory, buoyed by expectations of

business-friendly policies boosting corporate profits, and have

started December on a broadly positive trajectory.

Warner Bros Discovery ( WBD ) soared 14.97% after the media

company announced plans to separate its declining cable-TV

business from streaming and studio operations.

Nordson ( NDSN ) slid 9% as the dispensing-equipment maker

forecast fiscal 2025 revenue below Wall Street estimates, while

health insurer Centene ( CNC ) rose 2.41% after forecasting its

2025 profit above estimates.

Declining issues outnumbered advancers by a 2.24-to-1 ratio on

the New York Stock Exchange. There were 94 new highs and 75 new

lows on the NYSE.

The S&P 500 posted 10 new 52-week highs and seven new lows

while the Nasdaq Composite recorded 77 new highs and 116 new

lows.