US STOCKS-Wall Street fluctuates ahead of Nvidia results, government data

By Shashwat Chauhan and Twesha Dikshit

Nov 17 (Reuters) - Wall Street's main indexes struggled for direction on Monday, ahead of a packed week that includes AI giant Nvidia's earnings and the resumption of government data releases, while Alphabet rose after Berkshire Hathaway disclosed a stake in the company.

Google-parent Alphabet GOOGL.O jumped 4.6% to a record high after Berkshire Hathaway BRKa.N revealed a new $4.3 billion stake in the company and further reduced its stake in Apple AAPL.O. Apple shares fell 1.4%.

Nvidia's NVDA.O results, due after markets close on Wednesday, will test the sustainability of a stunning rally this year in AI-related stocks, with some investors concerned about stretched valuations and signs of a bubble. The chipmaker's shares dropped 1.3%.

Jefferies Tech Sector Specialist Jeff Favuzza notes the options market is implying a move of 6% in either direction for Nvidia post earnings.

At 11:44 a.m. ET, the Dow Jones Industrial Average .DJI fell 45.57 points, or 0.10%, to 47,100.51, the S&P 500 .SPX gained 1.17 points, or 0.02%, to 6,735.43 and the Nasdaq Composite .IXIC gained 32.54 points, or 0.16%, to 22,933.12.

Six of the 11 S&P sub-sectors were trading lower, with information technology .SPLRCT and energy .SPNY down around 0.7% each. The Philadelphia SE Semiconductor Index .SOX also dipped 0.1%.

"Right now, the tech growth sector appears to be taking a bit of a hit, which may be profit-taking before year-end, but Nvidia's results should offer insight into how much these companies are willing to spend on its products," said Brian Stutland, CIO at Equity Armor Investments.

Dell Technologies DELL.N dropped 6.6% after Morgan Stanley double-downgraded its rating on the AI server maker to "underweight" from "overweight". Hewlett Packard Enterprise HPE.N also fell 6.3% after a Morgan Stanley downgrade.

RETAIL GIANTS TO REPORT, JOBS DATA AWAITED

The quarterly earnings season will start to thin out this week, though not before earnings from retail giants Walmart WMT.N, Home Depot HD.N and Target TGT.N.

With the longest government shutdown in U.S. history officially having ended last week, key data releases from government agencies are expected in the next few days.

The much-delayed September jobs report will also be released on Thursday, but may do little more than confirm earlier private market surveys showing a slowing labor market.

Traders currently see a more than 57% chance that the Federal Reserve will hold its rate steady in December compared with a near 94% chance of a 25-basis-point cut seen a month ago, according to the CME FedWatch Tool.

On Monday, Fed Vice Chair Philip Jefferson said the U.S. central bank needs to "proceed slowly" with any further interest rate cuts.

Minutes from the October meeting - where the central bank cut rates by an expected 25 basis points - are due on Wednesday.

Meanwhile, brokerage Morgan Stanley expects U.S. stocks to outperform peers next year and prefers global equities over credit and government bonds.

Declining issues outnumbered advancers by a 1.84-to-1 ratio on the NYSE and by a 1.46-to-1 ratio on the Nasdaq.

The S&P 500 posted ten new 52-week highs and eight new lows while the Nasdaq Composite recorded 65 new highs and 175 new lows.