* Final reading of Q3 GDP at 3.5 pct vs. est. 3.3 pct
* Apple's fall weighs on S&P, Nasdaq
* S&P has risen about 11 pct so far in 2016
* Indexes down: Dow 0.18 pct, S&P 0.30 pct, Nasdaq 0.58 pct
(Updates to early afternoon)
By Tanya Agrawal
Dec 22 U.S. stocks were lower in early afternoon
trading on Thursday, dragging the Dow Jones Industrial Average
further away from 20,000, a level it has never breached.
The blue-chip index has been flirting with the historic
level for the last several days and came within 13 points of the
mark on Wednesday.
U.S. stocks have rallied since the Nov. 8 election, with the
Dow up about 9 percent and the S&P 500 gaining 6 percent on bets
that the economy would benefit from President-elect Donald
Trump's plans for deregulation and infrastructure spending.
The S&P has risen about 11 percent in 2016, topping the 8
percent gain that strategists had predicted in a Reuters poll 12
A pullback in the days ahead is welcome as it will relieve
short-term overbought conditions and overly bullish sentiment,
Katie Stockton, chief technical strategist at brokerage BTIG,
said in a note.
The market showed little reaction to data showing that the
U.S. economy grew faster than initially thought in the third
quarter, notching up its best performance in two years.
Gross domestic product increased at a 3.5 percent annual
rate instead of the previously reported 3.2 percent pace, the
Commerce Department said in its third GDP estimate.
Consumer spending, which accounts for more than two-thirds
of U.S. economic activity, rose 0.2 percent in November, below
the estimated 0.3 percent gain.
At 12:39 p.m. ET (1739 GMT) the Dow Jones industrial average
was down 36.35 points, or 0.18 percent, at 19,905.61.
The S&P 500 was down 6.84 points, or 0.30 percent, at
The Nasdaq Composite was down 31.81 points, or 0.58
percent, at 5,439.63.
Seven of the 11 major S&P sectors were lower, with the
consumer discretionary index's 1.07 percent fall
leading the decliners. Amazon's 0.97 percent fall was
the biggest drag on the sector.
"We're seeing a little bit of rotation going on with
investors moving out of technology and consumer sectors and into
telecommunications," said Jamie Cox, managing partner at Harris
Financial Group in Richmond, Virginia.
S&P telecommunications index led the gainers, with
a 0.83 percent rise.
Apple fell 1 percent to $115.88 after Nokia
said it had filed a number of lawsuits against the
iPhone maker for patent infringement. The stock was the biggest
drag on the S&P and Nasdaq.
ConAgra rose 3.3 percent to $39.25 after the
packaged foods maker's quarterly profit beat estimates.
Red Hat fell 12.4 percent to $69.92 after the Linux
software distributor's quarterly revenue fell below estimates.
Declining issues outnumbered advancers on the NYSE by 1,786
to 1,087. On the Nasdaq, 1,846 issues fell and 924 advanced.
The S&P 500 index showed ten new 52-week highs and two new
lows, while the Nasdaq recorded 88 new highs and 37 new lows.
(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil