* Oil falls 2.6 pct to lowest since late November
* Facebook falls on worries over future growth
* Traders hike June rate hike odds after Fed statement
* Tesla drops after reporting bigger-than-expected loss
* Indexes down: 0.16 pct, S&P 0.02 pct, Nasdaq 0.07 pct
(Adds details, changes comment, updates prices)
By Tanya Agrawal
May 4 U.S. stocks were little changed on
Thursday as a decline in energy and technology stocks erased
some of the early gains following the Federal Reserve's upbeat
comments about the economy.
Energy stocks were dragged lower as crude oil prices dropped
more than 2.6 percent to their lowest since late November on
concerns over rising global supply.
The energy sector fell 1.48 percent, leading the
losers among the 11 major S&P 500 sectors, with Exxon,
Chevron and Occidental Petroleum weighing the
Chesapeake Energy fell 7.4 percent after reporting a
bigger-than-expected fall in production.
The technology sector was influenced by declines in Apple
Facebook's 1 percent fall weighed on both the S&P 500
and Nasdaq after the company's outlook on advertising growth and
expenses spooked investors.
Apple was down 0.5 percent, and was the biggest
drag on the S&P 500 and the Nasdaq.
At the other end of the spectrum were financials,
which gained 0.61 after the Fed's hawkish tone indicated the
central bank could raise interest rates in June.
The Fed downplayed recent weak economic data and emphasized
the strength of the labor market. It added that consumer
spending continued to be solid, business investment had firmed
and inflation has been "running close" to its target.
"I think the Fed's diagnosis of what happened in the first
quarter was basically correct," said David Donabedian, chief
investment officer of CIBC Atlantic Trust Private Wealth
Management in Washington.
"The economic data waxes and wanes and there's clearly a
seasonal adjustment in the first quarter from which we see a
Futures traders are now pricing in a 72 percent chance of
June rate hike, up from 63 percent before the Fed's statement on
Wednesday, according to the CME Group's FedWatch Tool.
At 10:58 a.m. ET (1458 GMT), the Dow Jones Industrial
Average was down 32.83 points, or 0.16 percent, at
The S&P 500 was down 0.57 points, or 0.023868
percent, at 2,387.56 and the Nasdaq Composite was down
4.11 points, or 0.07 percent, at 6,068.45.
Caterpillar's 2.3 percent drop weighed the most on
Earnings of S&P 500 companies have generally come in above
expectations, pushing the benchmark index to within 1 percent of
its all-time high.
First-quarter profits at S&P 500 companies are estimated to
have increased 14.2 percent, its strongest growth since 2011,
according to Thomson Reuters I/B/E/S.
Tesla was down 4.6 percent to $296.64 after the
electric-car maker posted a bigger-than-expected loss.
Viacom fell 4.1 percent to $37.65 on a softening
advertisement market and news that Charter Communications
has re-tiered five of Viacom's flagship networks.
Regeneron rose 5.1 percent to $428.03 after the
biotech company's revenue edged past analysts' estimates.
Declining issues outnumbered advancers on the NYSE by 1,925
to 866. On the Nasdaq, 1,515 issues fell and 1,124 advanced.
The S&P 500 index showed 30 new 52-week highs and nine new
lows, while the Nasdaq recorded 72 new highs and 45 new lows.
(Reporting by Tanya Agrawal; Editing by Savio D'Souza)