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* Gloomy Spirit, Expedia results drag travel stocks lower
* PayPal drops after weak Q2 margins
* Qualcomm tumbles on signaling more pain from smartphone slump
* Indexes edge lower: Dow 0.01%, S&P 500 0.09%, Nasdaq 0.01%
Aug 3 (Reuters) -
The S&P 500 held near the flat line in choppy trade on Thursday afternoon as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings.
The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating.
“It was a carryover from yesterday's fear. People who got hit yesterday and didn't get a chance to get out got out this morning", said Brad McMillan, chief investment officer for Commonwealth Financial Network, "but then the buyers are showing up. So we're more greed than fear at this point.”
A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Investors were waiting for July's jobs report, due on Friday.
Another report showed the U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up. Richmond Federal Reserve President Thomas Barkin said U.S. inflation remained too high, although recent readings indicated price pressures easing.
At 2:27 p.m. ET
, the Dow Jones Industrial Average was down 3.32 points, or 0.01%, to 35,279.2, the S&P 500 slipped 3.89 points, or 0.09%, to 4,509.5 and the Nasdaq Composite edged down 1.46 points, or 0.01%, to 13,971.99.
The Cboe Volatility Index, Wall Street's fear gauge, briefly hit a two-month high and was last up at 16.11.
After the market close, Apple and Amazon.com are due to report quarterly results. During the session, the iPhone maker slipped 0.5%, while the e-commerce giant added 0.8%.
Qualcomm shares shed 9% after a gloomy forecast signaled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal Holdings tumbled 11.5% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement.
U.S. travel stocks fell on downbeat quarterly reports from Spirit Airlines and Expedia that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
Declining issues outnumbered advancing ones on the NYSE by a 1.64-to-1 ratio; on Nasdaq, a 1.00-to-1 ratio favored advancers.
The S&P 500 posted 14 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 54 new highs and 73 new lows. (Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and David Gregorio)