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Dow lower; S&P 500 and Nasdaq up

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Dollar up slightly; some Fed officials express discomfort

with

rate cuts

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Earnings focus on tech firms

(Updates to late morning)

By Caroline Valetkevitch and Amanda Cooper

NEW YORK/LONDON, Nov 3 (Reuters) - Most major stock

indexes were higher on Monday following news Amazon.com ( AMZN )

will supply cloud-computing services to OpenAI, and the dollar

hovered near a three-month high versus the euro due to waning

expectations for hefty U.S. rate cuts.

The multi-year $38 billion Amazon-OpenAI deal provided some

support to equities, with Amazon ( AMZN ) shares more than 4% higher.

The Federal Reserve last week cut interest rates as

expected. But Chair Jerome Powell said another cut in December

was "not a foregone conclusion", contrary to investor belief

that it was essentially a done deal.

Some Fed officials on Friday aired their discomfort with the

central bank's decision to cut rates, even as influential Fed

Governor Christopher Waller made the case for more policy easing

to shore up a weakening labor market.

Investors have been without most U.S. economic data releases

given the ongoing U.S. government shutdown.

"Investors are optimistic about AI and progress with China

with respect to the trade truce. But as the market opened, we're

seeing a tale of two tapes," said Adam Sarhan, chief executive

of 50 Park Investments in New York.

"The AI and tech stocks are up today and just about

everything else is down. Clearly the narrowing of leadership

continues in a very apparent way," he said.

TRUMP'S TARIFFS GO TO SUPREME COURT

The U.S. Supreme Court is considering the legality of

President Donald Trump's global tariffs, with arguments set for

Wednesday. Under one legal authority or another, Trump's tariffs

are expected to stay in place long-term.

The Dow Jones Industrial Average fell 189.63 points,

or 0.39%, to 47,375.42, the S&P 500 rose 5.83 points, or

0.09%, to 6,846.03 and the Nasdaq Composite rose 97.25

points, or 0.41%, to 23,822.21.

MSCI's gauge of stocks across the globe rose

0.69 points, or 0.07%, to 1,006.92.

The pan-European STOXX 600 index rose 0.07%.

Investors will also get more quarterly results from

technology companies this week.

Data analytics company Palantir Technologies ( PLTR ) is due

to report after the closing bell. Semiconductor firm Advanced

Micro Devices ( AMD ) and Qualcomm ( QCOM ) are also due to

report this week, along with Uber ( UBER ) and fast-food chain

McDonald's.

U.S. megacap companies delivered a mixed bag of results last

week. Investors are looking for a return on the extensive

capital spending on AI.

DOLLAR GAINS AGAINST MAJOR CURRENCIES

The euro, which slipped as low as $1.1505 against the

dollar, its weakest since August 1, pared losses to trade down

0.1% at $1.1518.

That followed data from the Institute for Supply Management

showing U.S. manufacturing contracted for an eighth straight

month in October as new orders remained subdued, and suppliers

were taking longer to deliver materials to factories against the

backdrop of tariffs on imported goods.

The dollar index, which measures the greenback

against a basket of currencies, rose 0.13% to 99.94. Against the

Japanese yen, the dollar strengthened 0.02% to 154.03.

Sterling weakened 0.24% to $1.3119, ahead of a

knife-edge Bank of England rate decision later this week.

Cryptocurrency bitcoin was down 2% at $107,486.

The yield on benchmark U.S. 10-year notes fell

0.2 basis points to 4.099%, from 4.101% late on Friday.

U.S. crude fell 0.56% to $60.64 a barrel and Brent

fell to $64.48 per barrel, down 0.45% on the day.

Investors digested news that OPEC+ plans to end its supply

increases.