LIVE MARKETS-Wall Street eases on Powell remarks ahead of GDP, PCE

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WALL STREET EASES ON POWELL REMARKS AHEAD OF GDP, PCE

The S&P 500, the Nasdaq and the Dow all ended modestly lower on Wednesday after Federal Reserve Chair Jerome Powell curbed rate hike expectations.

The Dow Jones Industrial Average .DJI fell 171.50 points, or 0.37%, to 46,121.28, the S&P 500 .SPX lost 18.95 points, or 0.28%, to 6,637.97 and the Nasdaq Composite .IXIC lost 75.62 points, or 0.33%, to 22,497.86.

Materials .SPLRCM and commercial airlines .SPCOMAIR were among the big percentage losers on the day.

On Tuesday, Powell's remarks appeared aimed for a middle ground, balancing inflation and labor market concerns, promising a cautious approach to the central bank's policy decisions.

Chicago Fed President Austan Goolsbee echoed Powell's note of caution on Wednesday, telling the Financial Times he's "uncomfortable with overly frontloading" rate cuts on economic presumptions.

The Commerce Department delivered a jumbo upside surprise with its new home sales report, which showed sales of newly constructed homes jumping 20.5% to a 3-1/2 year high, contradicting a slew of recent housing data indicating weakness in the sector.

The S&P 1500 Homebuilding index .SPCOMHOME gained 0.6% on the day.

More housing data is expected on Thursday, with the National Association of Realtors' existing home sales report, which is due to share a crowded marquee with weekly jobless claims and Commerce Department data on durable goods, along with its third and final stab at second-quarter GDP.

On Friday, the tireless Commerce Department unveils its hotly-anticipated Personal Consumption Expenditures (PCE) report, which covers everything from consumer spending to inflation.

On the earnings front, Costco COST.O is to headline Thursday's sparse docket.

Here's your closing snapshot:

(Stephen Culp)

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