S&P 500, Nasdaq slip as investors digest earnings, data

Fed officials signal pause on rate cuts

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Initial jobless claims unchanged from prior week

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Indexes: Dow up 0.03%, S&P down 0.19%, Nasdaq 0.38%

NEW YORK, April 18 (Reuters) - U.S. stocks dipped on Thursday, as investors waded through the latest batch of corporate earnings, while economic data and comments from Federal Reserve officials indicated the central bank was unlikely to cut interest rates in the near future.

Economic data showed that the labor market remained resilient, as weekly initial unemployment claims were unchanged from the prior week at 212,000 while a gauge of manufacturing in the mid-Atlantic region rose to a two-year high.

The solid labor market, recent reading showing sticky inflation, and comments from Fed officials including Chair Jerome Powell have led markets to back off expectations the central bank would cut interest rates by at least 25 basis points (bps) at its June meeting.

"You got the unemployment numbers today and they're not showing that the labor market is, anywhere near going from being as tight as it is, there's no loosening the labor market that you can see," said Tom Hainlin, senior investment strategist at U.S. Bank Wealth Management in Minneapolis.

"Economic data just says that the economy is still in a good place and the reason for the Fed keeping rates high is positive growth, so you're getting this whipsaw in terms of what do you want to own."

The Dow Jones Industrial Average rose 5.94 points, or 0.02%, to 37,758.56, the S&P 500 lost 9.45 points, or 0.19%, to 5,012.82 and the Nasdaq Composite lost 59.14 points, or 0.38%, to 15,624.23.

The S&P 500 is on track for its fifth straight session of declines, as equities have struggled recently following a five-month rally that started in November in part due to expectations the Fed was likely to cut interest rates in the first half of the year.

Comments on Thursday from Fed officials reiterated the lack of urgency to cut rates, as New York Federal Reserve President John Williams cited the robust economy while Atlanta Federal Reserve President Raphael Bostic he is "comfortable being patient" as inflation is returning to the Fed's 2% target more slowly than expected.

Market expectations for a rate cut of at least 25 bps in June have shrunk to 15.2%, according to CME's FedWatch Tool, with July standing at 41.5%. down from 48.4% a week ago.

On the plus side, stock Meta Platforms rose 2.04% as the biggest boost to the S&P 500 after Bernstein raised its price target to $590 from $535.

Earnings season continued to pick up steam with Genuine Parts jumping 11.75% as the top percentage gainer on the S&P 500, after the automotive parts distributor raised its 2024 profit forecast.

Las Vegas Sands lost 8.96% despite beating quarterly expectations, as multiple brokerages cut their price target on the stock, citing weakness in its Macau operations.

Equifax tumbled 9.12% as the worst performing S&P 500 stock after the credit ratings firm forecast its second-quarter revenue below estimates.

Declining issues outnumbered advancing ones by a 1.1-to-1 ratio on the NYSE and by a 1.11-to-1 ratio on the Nasdaq.

The NYSE recorded 27 new highs and 80 new lows, while the Nasdaq recorded 21 new highs and 212 new lows.