* Apple slips after revenue misses expectations
* S&P companies Q1 profit growth estimates has been rising
* ADP drops after disappointing earning reports
* Yum, Delphi higher after reporting results
* Indexes down: Dow 0.17 pct, S&P 0.25 pct, Nasdaq 0.44 pct
(Adds details, changes comment, updates prices)
By Tanya Agrawal
May 3 U.S. stocks were lower in late morning
trading on Wednesday as index-heavyweight Apple's disappointing
report put a dampener on what has been a largely upbeat earnings
season, with major stock indexes hovering near record highs.
Shares of Apple dropped 1.4 percent to $145.42
after the company reported a surprise fall in iPhone sales and
forecast current-quarter revenue below estimates.
Apple was the biggest drag on the S&P 500 and the Nasdaq
Composite indexes. The S&P technology sector fell 0.44
percent, making it the biggest drag on the benchmark index among
the 11 major S&P sectors.
Strong corporate reports so far had resulted in estimates
for first-quarter profit growth at S&P 500 companies increasing
to 14.2 percent as of Wednesday, from an estimate of 10.4
percent growth two weeks back, according to Thomson Reuters
"We're about 70 percent through the earnings season and
despite some isolated incidents, overall the season has been
great," said Randy Frederick, vice president of trading and
derivatives for Charles Schwab in Austin, Texas.
"And that's one of the reasons why the indexes are hovering
near record levels."
The Dow Jones Industrial Average, the S&P and the Nasdaq are
less than one percent away from their record highs.
"The SPX has spent several days in a consolidation phase,
but has yet to see relief from short-term overbought
conditions," said Katie Stockton, chief technical strategist at
BTIG in a note.
"This could mean that a shallow pullback is needed to
refresh the uptrend and allow for a breakout to new highs."
At 10:40 a.m. ET (1440 GMT) the Dow was down 35.58
points, or 0.17 percent, at 20,914.31. The S&P 500 was
down 6.09 points, or 0.25 percent, at 2,385.08 and the Nasdaq
was down 26.78 points, or 0.44 percent, at 6,068.58.
Nine of the 11 major S&P 500 sectors were lower, with the
materials index's 0.67 percent fall leading the
Automatic Data Processing fell 7.5 percent after its
revenue missed expectations.
Yum Brands rose 3.5 percent to $68.66, while Delphi
Automotive rose 8.2 percent to $84.89 after reporting
Anadarko Petroleum fell 8.3 percent to $51.53, after
one of its wells was linked to a fatal explosion at a Colorado
Investors also await the Federal Reserve's statement on
monetary policy at 2 p.m. ET. While the central bank is expected
to hold interest rates steady, it may hint it is on track for an
increase in June.
Declining issues outnumbered advancers on the NYSE by 1,825
to 874. On the Nasdaq, 1,791 issues fell and 778 advanced.
The S&P 500 index showed 24 new 52-week highs and six new
lows, while the Nasdaq recorded 54 new highs and 47 new lows.
(Reporting by Tanya Agrawal; Editing by Savio D'Souza)