Wall Street wavers as healthcare sinks and Intel climbs

By Noel Randewich

(Reuters) - Wall Street wobbled on Thursday as healthcare stocks ended a three-day rally after UnitedHealth cut its profit forecast, offsetting gains in Intel and other technology stocks.

UnitedHealth fell 5.2 percent, making the health insurer the biggest drag on the Dow. The company's profit warning sent shares of peers Anthem and Aetna down more than 6 percent.

The S&P healthcare sector <.SPXHC> was the worst performer among the 10 major S&P sectors with a 1.7 percent decline.

Pfizer dropped 3.4 percent after reports that the company's talks to buy Allergan and redomicile in Ireland were in final stages. Allergan was down 2.6 percent.

 

Intel Corp jumped 3.6 percent after boosting its annual dividend. The chipmaker and Apple , up 1.3 percent, added more upward pressure to the S&P 500 than any other stocks.

Mobile payments company Square soared 45 percent in its highly anticipated market debut, while Tinder-owner Match Group's shares popped 20 percent on their first trading day.

Data on Thursday appeared to support the Federal Reserve's view of a strengthening labour market ahead of its meeting next month. The number of Americans filing for unemployment benefits fell last week.

Minutes from the Fed's October meeting, released on Wednesday, hardened expectations of a December interest rate hike and hinted at a cautious approach after that.

U.S. interest rates futures implied a 72-percent chance of a lift-off next month, up from 64 percent on Tuesday.

Investors are increasingly looking to what the Fed might do in 2016 and many are becoming more cautious, said David Carter, chief investment officer at Lenox Wealth Advisors in New York.

"We would not be surprised if we limp through to mid-December," Carter said. "It's less than a month away from the Fed decision and I'm not sure anyone wants to put big trades on before that."

At 2:18 pm the Dow Jones industrial average <.DJI> was 0.02 percent lower at 17,733.89 points and the S&P 500 <.SPX> was 0.09 percent lower at 2,081.8. The Nasdaq Composite <.IXIC> edged up 0.08 percent to 5,079.45.

Salesforce jumped 5.6 percent after its quarterly adjusted profit beat estimates and the online sales software maker raised its full-year revenue forecast.

Declining issues outnumbered advancing ones on the NYSE by 1,547 to 1,474. On Nasdaq, 1,544 issues fell and 1,202 advanced.

The S&P 500 index showed 23 new 52-week highs and six new lows, while the Nasdaq recorded 58 new highs and 87 new lows.

(Additional reporting by Abhiram Nandakumar in Bengaluru; Editing by Nick Zieminski)