* Oil falls 2.5 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: Dow 0.10 pct, S&P 0.06 pct, Nasdaq 0.08 pct
(Updates to open)
By Tanya Agrawal
May 4 Wall Street edged lower on Thursday
morning, weighed down by a drop in energy stocks after oil
prices dropped and as Facebook led technology shares lower.
Facebook's 1.1 percent fall weighed the most on the
S&P 500 and Nasdaq. The social media giant reported surging
quarterly profit and revenue, but investors showed some
nervousness about future earnings.
Energy stocks were dragged lower as crude oil prices dropped
more than 2.5 percent to their lowest since late November on
concerns over rising global supply.
The energy sector fell 1.57 percent, leading the
laggards among the 11 major S&P 500 sectors.
At the other end of the spectrum were financials,
which gained 0.65 after a hawkish statement from the Federal
Reserve indicated the central bank was on track to raise
interest rates in June.
The Fed emphasized the strength of the labor market and said
consumer spending continued to be solid, business investment had
firmed and inflation has been "running close" to its target.
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.
"The Fed wrote off the first quarter as being a temporary
slowdown and I don't think that's really any surprise as the
focus really should be on the jobs report," said Scott Brown,
chief economist at Raymond James in St. Petersburg, Florida,
referring to the April U.S. non-farm payrolls data due Friday.
At 9:49 a.m. ET (1349 GMT) the Dow Jones Industrial Average
was down 21.05 points, or 0.1 percent, at 20,936.85.
The S&P 500 was down 1.59 points, or 0.06 percent, at
2,386.54 and the Nasdaq Composite was down 4.88 points,
or 0.08 percent, at 6,067.68.
Earnings of S&P 500 companies have generally come in above
expectations, pushing the benchmark index to within one 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.
"Strong earnings have been a continuing theme for a while
even with the moderate economic growth, and we're also seeing
the global economy pick up, so that's all adding to the positive
mood," said Brown.
Tesla was down 2.4 percent to $303.65 after the
electric-car maker posted a bigger-than-expected loss.
Viacom fell 10 percent to $35.36 after the media
company reported results.
CBS, which is scheduled to report results after the
market close, was also down 3.5 percent at $61.25.
Insurers AIG, Metlife and Prudential
were up about 2.5 percent after reporting a better-than-expected
Declining issues outnumbered advancers on the NYSE by 1,557
to 1,091. On the Nasdaq, 1,260 issues rose and 1,079 fell.
The S&P 500 index showed 25 new 52-week highs and six new
lows, while the Nasdaq recorded 58 new highs and 26 new lows.
(Reporting by Tanya Agrawal; Editing by Savio D'Souza)