NEW YORK, Dec 6 (Reuters) - The S&P 500 and the Nasdaq rose on Friday following upbeat forecasts from Lululemon Athletica and other companies and as monthly U.S. jobs data reinforced expectations for the Federal Reserve to cut interest rates this month.
The Dow was down slightly, with a 4.8% drop in UnitedHealth Group (UNH.N), shares weighing on the index.
The S&P 500 and Nasdaq hit intraday record highs earlier. The S&P 500 consumer discretionary index (.SPLRCD), was up 1.5% and hit an all-time high as well, with Lululemon leading the way up.
Shares of Lululemon Athletica (LULU.O), jumped 17.3% after the sportswear maker increased its full-year forecasts.
Also in the consumer discretionary space, shares of cosmetics retailer Ulta Beauty (ULTA.O), advanced 9.8% after the company raised its annual profit forecast.U.S. job growth surged in November, but an increase in the unemployment rate to 4.2% pointed to an easing labor market.
"It does support the case for the Fed to continue to cut rates in the December meeting and into the first quarter," said Bill Northey, senior investment director at U.S. Bank Wealth Management in Billings, Montana.
The Dow Jones Industrial Average (.DJI), fell 160.09 points, or 0.36%, to 44,605.62, the S&P 500 (.SPX), gained 6.29 points, or 0.10%, to 6,081.40 and the Nasdaq Composite (.IXIC), gained 117.87 points, or 0.60%, to 19,818.60.
Following the data, U.S. rate futures were pricing in about a 90% chance the Fed will lower interest rates by 25 basis points at its Dec. 17-18 policy meeting, up from 72% earlier, according to LSEG calculations.
The Fed has lowered interest rates by 75 basis points since September, when it launched its easing cycle.
Fed Governor Michelle Bowman said inflation risks to the economy remained and that augured caution with further decisions on rate cuts.
Declining issues outnumbered advancers by a 1.18-to-1 ratio on the NYSE. There were 302 new highs and 90 new lows on the NYSE.
On the Nasdaq, 2,457 stocks rose and 1,778 fell as advancing issues outnumbered decliners by a 1.38-to-1 ratio.
Additional reporting by Shashwat Chauhan and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and David Gregorio
