* Nasdaq trading close to two-week low, weighed down by
* Technology index set for worst day since late September
* Oil rally lifts Exxon, Chevron
* Dow up 0.33 pct, S&P down 0.38 pct, Nasdaq down 1.36 pct
(Updates to mid-afternoon trading, changes byline)
By Chuck Mikolajczak
NEW YORK, Dec 1 A sharp decline in technology
stocks weighed on both the Nasdaq and the S&P 500 indexes on
Thursday, while the Dow managed to stay afloat thanks to
advances in bank and energy shares.
Declines in Facebook, off 2.8 percent at $115.14, and
Microsoft, down 1.8 percent to $59.18, sent the Nasdaq
to its lowest intraday level in two weeks, while the S&P 500
technology index was down 2.3 percent, on pace for its
worst daily performance in nearly three months.
While Wall Street has rallied since the November election on
hopes that President-elect Donald Trump's policies will trigger
inflation and hasten a rise in interest rates, technology stocks
have failed to participate, dropping more than 2 percent.
"In a higher rate environment you are going to want to pay
less for growth further out. To a large extent that is probably
what is happening in the higher (price-to-earnings) stocks,"
said Kim Forrest, senior equity research analyst at Fort Pitt
Capital Group in Pittsburgh.
"Everybody is getting tarred and feathered."
The Dow managed to move higher, as gains in high-priced
names in the financial and energy sectors advanced. Goldman
Sachs, up nearly 3 percent, accounted for nearly 40
points to the plus side for the price-weighted index. The stock
is up nearly 24 percent since the election.
The Dow Jones industrial average rose 62.35 points,
or 0.33 percent, to 19,185.93, the S&P 500 lost 8.34
points, or 0.38 percent, to 2,190.47 and the Nasdaq Composite
dropped 72.19 points, or 1.36 percent, to 5,251.49.
A continued rally in oil helped Chevron and
ExxonMobil advance. Brent futures settled up
more than 4 percent after a nearly 9 percent jump on Wednesday
after major oil producers agreed to cut output and support
prices, the first such move since 2008.
The S&P 500 energy index rose 0.4 percent, while the
S&P financial index climbed 1.6 percent.
Investors are now turning their attention to Friday's U.S.
payrolls report for confirmation the economy continues to
strengthen, with an eye on an expected hike in benchmark U.S.
interest rates by the Federal Reserve at its meeting on Dec.
Traders have priced in a 91 percent chance of a rate
increase in December, according to Thomson Reuters data.
Dollar General shares were among the worst performers
on the S&P, falling 5.4 percent after the discount retailer
reported a surprise drop in quarterly comparable sales and
tempered its full-year profit forecast.
Bluebird Bio soared 14.1 percent to $69.85 after
the gene-therapy developer said patients undergoing its multiple
myeloma treatment showed strong benefits. Shares of Celgene
, which is developing the therapy with Bluebird, edged
up 0.5 percent to $119.05.
Skechers surged 15.8 percent after the shoe seller's
chief executive bought $11 million worth of stock.
Declining issues outnumbered advancing ones on the NYSE by a
1.71-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored decliners.
The S&P 500 posted 79 new 52-week highs and seven new lows;
the Nasdaq Composite recorded 164 new highs and 51 new lows.
(Reporting by Chuck Mikolajczak; Editing by James Dalgleish)