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* Fed's Harker does not see case for additional stimulus
* U.S. factory sector contracts in August
* Nordstrom (NYSE:JWN) jumps after profit beat
* Dow up 0.17%, S&P down 0.16%, Nasdaq falls 0.49%
(Updates to early afternoon)
By Akanksha Rana
Aug 22 (Reuters) - The benchmark S&P 500 and the Nasdaq fell
on Thursday after weak U.S. manufacturing data raised concerns
about the health of the economy, with comments from Fed
officials dampening hopes of future interest rate cuts.
A private survey showed U.S. manufacturing activity in
August contracted for the first time in almost a decade, signs
that factories are suffering from a global slowdown amid an
escalating U.S.-China trade war.
Yields on the U.S. two-year Treasury notes again moved above
those of 10-Year bonds in response to the disappointing data.
"It's a very quiet market and you have to bear with it for
the short term," said Robert Pavlik, chief investment strategist
and senior portfolio manager at SlateStone Wealth LLC in New
York.
"I don't see a near term recession but looking at a year
from now, it could be possible ... If the (yield curve)
inversion continues into September and into October then it's
something to be more mindful about."
Adding to weak sentiment, President of Philadelphia Fed
Patrick Harker said he does not see the case for additional
stimulus. Kansas City Federal Reserve Bank President Esther