S&P, Nasdaq slip as tech weighs; Dow hits record high

The S&P 500 and the Nasdaq lost ground in late morning trading on Thursday as tech stocks slipped, while the Dow moved above the 22,000 mark to hit a new record.

The S&P tech index — which has been the best performer in 2017, with a 23 per cent rise — was down 0.39 per cent.

Apple, Amazon and Microsoft were top drags on the S&P and the Nasdaq.

However, Tesla's 7.20 per cent jump eased some pressure on the tech-heavy index after the luxury electric car maker reported quarterly revenue that more than doubled.

"The tech sector is going through a consolidation phase where people are taking some money away from big names and putting it towards underperformers," said Randy Frederick, vice president of trading and derivatives at Charles Schwab.

"I don't see that as a bad thing as it helps broaden out this rally."

Quarterly earnings remain in the spotlight to see if valuations are justified, especially with the S&P 500 trading at around 18 times earnings estimates for the next 12 months, well above its long-term average of 15 times.

Earnings of S&P 500 companies are now expected to have climbed 11.4 percent in the second quarter, up from an 8 percent rise estimated at the start of the month, according to Thomson Reuters I/B/E/S.

"As long as earnings and revenue continue to grow and we remain in a low-rate environment, higher valuations can be justified," Frederick said.

At 11:00 a.m. ET (1500 GMT), the Dow Jones Industrial Average was up 12.84 points, or 0.06 per cent, at 22,029.08, the S&P 500 was down 3.26 points, or 0.13 per cent, at 2,474.31 and the Nasdaq Composite was down 10.08 points, or 0.16 per cent, at 6,352.57.

Six of the 11 major S&P sectors were lower, with the energy index's 0.70 per cent fall leading the decliners.

Investors are also keeping an eye on economic data for clues on the health of the economy ahead of the keenly awaited monthly payrolls data on Friday.

The Labor Department data showed weekly jobless claims fell last week, pointing to a tightening labor market, but a report from the Institute for Supply Management showed its non-manufacturing index fell to 53.9 last month from 57.4 in June.

US-listed shares of Israeli drugs company Teva slumped 18.08 per cent after it reported a steeper-than-expected drop in second-quarter earnings and cut its interim dividend.

Yum Brands fell 1.17 per cent, while Dish Network lost 1.75 per cent after releasing their earning reports.

Advancing issues outnumbered decliners on the NYSE by 1,348 to 1,343. On the Nasdaq, 1,420 issues fell and 1,205 advanced.