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Amazon ( AMZN ) shares rise in extended trade after Q1 results

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Eli Lilly ( LLY ) jumps after raising annual profit forecast

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GE Healthcare ( GEHC ) shrinks after Q1 revenue miss

(Updates to 4:10 PM)

By Chibuike Oguh

NEW YORK, April 30 (Reuters) - U.S. stocks ended lower

on Tuesday as markets weighed economic data showing rising labor

costs and deteriorating consumer confidence on the eve of a key

Federal Reserve policy meeting to decide the direction of

interest rates.

Data showed on Tuesday that U.S. labor costs rose by a

more-than-expected 1.2% last quarter, indicating an uptick in

wage pressures. A survey also found that U.S. consumer

confidence worsened in April, dropping to its lowest level in

more than 1-1/2 years.

The reports came a day before the Federal Reserve Open

Market Committee (FOMC) ends its two-day meeting, with investors

widely expecting the central bank to leave interest rates

unchanged.

All 11 S&P 500 sectors ended lower, led by stocks in energy

, consumer discretionary, materials,

industrials and technology sectors.

Every Magnificent Seven stock also finished lower, including

Tesla, Alphabet, Nvidia ( NVDA ), Microsoft ( MSFT )

, and Amazon ( AMZN ). Amazon ( AMZN ) shares rose 3.1% in

extended hours trading after it reported first quarter results

that beat analyst estimates.

"We're still in an environment where the knee-jerk reaction

is to extrapolate any warmer data into firmer inflation and more

hawkish reaction from the Fed," said Garrett Melson, portfolio

strategist at Natixis Investment Managers in Boston.

"But nothing has changed: growth is still strong, labor

markets are holding up, and ultimately we're taking a little bit

of breather in the disinflation process," Melson added.

Money markets are pricing in just about 31 basis points

(bps) of rate cuts this year, down from about 150 bps estimated

at the start of 2024, according to LSEG data.

The Dow Jones Industrial Average fell 570.17 points,

or 1.49%, to 37,815.92, the S&P 500 lost 80.48 points, or

1.57%, to 5,035.69 and the Nasdaq Composite lost 325.26

points, or 2.04%, to 15,657.82.

For the month, the S&P 500 fell 4.2%, the Nasdaq lost 4.4%,

and Dow fell 5%. The S&P 500 and the Nasdaq registered their

biggest monthly percentage decline since September 2023 while

the Dow registered its biggest decline since September 2022.

Shares of GE HealthCare ( GEHC ) shrank 14.3% after its

first-quarter revenue missed analyst estimates, 3M ( MMM )

gained nearly 5% after posting a better-than-expected quarterly

profit.

Drugmaker Eli Lilly jumped almost 6% after it raised

its full-year profit forecast. PayPal ( PYPL ) rose 1.4% after

raising its full-year adjusted profit forecast.

Of the 265 companies in the S&P 500 that have reported

earnings to date for the first quarter, 79.2% have beat analyst

estimates, compared with the long-term average of 67%, according

to LSEG I/B/E/S data.

Declining issues outnumbered advancers by a 4.6-to-1 ratio

on the NYSE. On the Nasdaq, 1,183 stocks rose and 3,028 fell as

declining issues outnumbered advancers by a 2.56-to-1 ratio.

The S&P 500 posted 18 new 52-week highs and 7 new lows while

the Nasdaq recorded 53 new highs and 119 new lows.

Volume on U.S. exchanges was 11.3 billion shares, compared

with the 11 billion average for the full session over the last

20 trading days.