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Constellation Brands ( STZ ) jumps after Berkshire discloses stake
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Intel ( INTC ) up after report Broadcom ( AVGO ), TSMC eye deals to split it
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Fed's January meeting minutes due on Wednesday
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Indexes down: Dow 0.36%, S&P 500 0.14%, Nasdaq 0.45%
(Updates to mid-afternoon)
By Stephen Culp
NEW YORK, Feb 18 (Reuters) - Wall Street dipped on
Tuesday as investors showed little conviction at the top of a
holiday-shortened week with earnings season winding down and
geopolitical and trade uncertainties holding risk appetite in
check.
The three major stock indexes wobbled between red and green
for much of the session, but slipped into negative territory in
the afternoon, weighed down by Meta Platforms ( META ),
Amazon.com ( AMZN ) and Alphabet.
"We're seeing a little bit of a lull in the market," said
Chuck Carlson, chief executive officer at Horizon Investment
Services in Hammond, Indiana. "There aren't a whole lot of
catalysts right now that can drive the market one way or the
other, and because of that, you kind of get days like this."
"Investors are playing it pretty close to the vest today,"
Carlson added.
On Wednesday, the U.S. Federal Reserve is expected to
release the minutes of its January policy meeting, at which the
voting members elected to let interest rates stand amid signs of
an inflation rebound and the unknown extent and effects of
President Trump's threatened tariffs.
Remarks from U.S. Federal Reserve policymakers largely
adhered to the same script, with Philadelphia Fed President
Patrick Harker, Governors Michelle Bowman and Christopher Waller
saying they believe economic strength and elevated inflation
warrant holding the policy rate steady for the time being.
San Francisco Fed President Mary Daly reiterated that a
pause in rate cuts is appropriate until more visible progress is
made toward bringing inflation down to the Fed's 2% goal.
The minutes will be scrutinized for clues regarding the
central bank's path forward, particularly in light of recent
data, which shows price growth gaining momentum, falling
consumer sentiment and weaker-than-expected retail sales.
"The Fed is being reasonably transparent here," Carlson
said. "There's been evidence that the economy is slowing down a
little bit and I'm sure they're watching that. But I don't think
they feel significant pressure, at least at this point, to drop
rates anytime soon."
The Dow Jones Industrial Average fell 159.02 points,
or 0.36%, to 44,387.06, the S&P 500 lost 8.67 points, or
0.14%, to 6,105.96 and the Nasdaq Composite lost 90.44
points, or 0.45%, to 19,936.34.
Fourth-quarter earnings season has come around the final
bend, with 383 companies in the S&P 500 having reported as of
Friday. Of those, 74% have posted better-than-expected results,
according to LSEG data.
Analysts currently see fourth-quarter S&P 500 earnings
growth of 15.3% year-on-year, up from the 9.6% estimate as it
stood on Jan. 1.
Intel ( INTC ) advanced 10.7% after a report over the
weekend said rivals Taiwan Semiconductor Manufacturing Co. ( TSM )
and Broadcom ( AVGO ) were considering potential deals
that could split the chipmaker in two.
The move gave a boost to the Philadelphia SE semiconductor
index, which gained 1.4%.
Constellation Brands ( STZ ) jumped 4.6% after Warren
Buffett's Berkshire Hathaway ( BRK/A ) disclosed a new investment
in the company on Friday.
Meta Platforms ( META ) was off 3.7%, on course to snap its
20-session winning streak.
Advancing issues outnumbered decliners by a 1.25-to-1 ratio
on the NYSE. There were 229 new highs and 73 new lows on the
NYSE.
On the Nasdaq, 2,117 stocks rose and 2,251 fell as declining
issues outnumbered advancers by a 1.06-to-1 ratio.
The S&P 500 posted 25 new 52-week highs and 11 new lows
while the Nasdaq Composite recorded 117 new highs and 94 new
lows.