* Textron and Cardinal Health fall after results
* Yelp shares rally a day after posting strong revenue
* AT&T approached DirecTV about possible acquisition: WSJ
* Dow down 0.2 pct, S&P 500 down 0.1 pct, Nasdaq up 0.1 pct
(Updates to open, adds ISM and construction spending data)
By Ryan Vlastelica
NEW YORK, May 1 U.S. stocks mostly edged lower
on Thursday as investors found few reasons to keep chasing gains
following a record close in the Dow and as a number of prominent
names disappointed in their quarterly results.
The day's losses were slight but broad, with eight of the
ten primary S&P 500 sectors lower on the day. Industrial names
were among the weakest, pressured by Textron results,
while Cardinal Health hit healthcare names.
Cardinal fell 6.2 percent to $65.20 as its revenue
missed expectations, while Textron lost 3 percent to
$39.67 as earnings fell from the prior year and sales were
Both the Dow and S&P 500 are coming off three-day winning
streaks, and the blue-chip Dow closed at its first record of
2014 on Wednesday, fueled by an upbeat view of the economy from
the Federal Reserve, which offset a much weaker-than-expected
read on first-quarter economic growth.
"Earnings have been disappointing, and that, along with
concerns over valuation, makes it difficult for the market to
make too much headway," said Bruce McCain, chief investment
strategist at Key Private Bank in Cleveland, Ohio. "We'll
probably continue to lose momentum at the top of the trading
range until we get some clearly positive signals."
U.S.-listed shares of Sony Corp fell 2.1 percent to
$17.27 after the company cut its earnings outlook for the third
time in a year, forecasting barely 10 percent of its initial
The Dow Jones industrial average was down 25.06
points, or 0.15 percent, at 16,555.78. The Standard & Poor's 500
Index was down 2.41 points, or 0.13 percent, at 1,881.47.
The Nasdaq Composite Index was up 5.12 points, or 0.12
percent, at 4,119.68.
On the upside, Yelp Inc jumped 13.8 percent to
$66.35 a day after reporting strong revenue growth.
DirecTV Inc rose 5.7 percent to $82
after the Wall Street Journal reported that AT&T Inc had
approached the company about a possible acquisition. Shares of
AT&T dipped 0.5 percent to $35.53.
Jobless claims unexpectedly rose in the latest week, though
the underlying trend continued to point to improving labor
market conditions. Separately, U.S. consumer spending recorded
its largest increase in more than four and a half years in
U.S. manufacturing growth accelerated for a third straight
month in April, according to the Institute for Supply
Management's index of national factory activity.
(Editing by Bernadette Baum and Nick Zieminski)