July 27, 2017 / 6:58 PM / 2 years ago

US STOCKS-Tech, transport woes hit Wall Street

* UPS outlook weighs on Dow transports

* Tech sector drops despite gains for Facebook

* Verizon jumps after subscriber additions top estimates

* Twitter shares tumble as user growth stalls

* Dow up 0.1 pct, S&P down 0.38 pct, Nasdaq down 0.9 pct (Updates to late afternoon)

By Lewis Krauskopf

July 27 (Reuters) - A swoon in technology and transportation shares led Wall Street lower on Thursday, with stocks hastening their declines in afternoon trading on a day full of corporate earnings reports.

The Dow Jones Transport Average, often looked at as a gauge of the economy’s health, was down 3.2 percent, dragged lower after a disappointing outlook from package delivery company United Parcel Service.

The transports fell to their lowest point in nearly two months as UPS rival FedEx also fell.

The S&P 500 technology sector was the worst performing major group, falling 1.2 percent even as Facebook shares gained 3.3 percent after the social media company’s results.

Tech has been the best-performing sector this year, leading the S&P 500’s 10.2 percent run this year.

Wall Street’s main stock indexes had all tallied intraday record highs earlier in the session, and the Dow industrials held their gains.

“The general sentiment of the market coming into the day was that transportation stocks are telling us something that we’re not paying attention to,” said Art Hogan, chief market strategist at Wunderlich Securities in New York.

“You’ve got a general feeling a lot of good news is priced in to this market,” Hogan said. “That holds with technology. The problem with momentum stocks, once they start heading in a direction they get there violently and that’s what we’re seeing today.”

The Dow Jones Industrial Average rose 21.2 points, or 0.1 percent, to 21,732.21, the S&P 500 lost 9.32 points, or 0.38 percent, to 2,468.51 and the Nasdaq Composite dropped 57.64 points, or 0.9 percent, to 6,365.11.

The PowerShares QQQ Trust, an exchange-traded fund (ETF) tracking the Nasdaq 100, hit a record intraday high shortly after midday in New York but fell as much as 2.5 percent from there with a spike in volume. As the market fell, Nasdaq 100 futures posted their busiest hour in terms of volume since alt least mid March.

“My guess is this is selling by a large ETF holder, likely in the QQQ”, said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh, referring to the market’s afternoon decline.

Amazon.com was due to post results after the bell, the last of the high-flying companies known as “FANG” stocks to report.

With nearly half the S&P 500 having reported, second-quarter earnings are expected to have climbed 10.7 percent, compared to an 8-percent rise expected at the start of the month, according to Thomson Reuters I/B/E/S.

Verizon shares surged 7.6 percent. The No. 1 U.S. wireless carrier’s quarterly revenue topped expectations. The stock was among the biggest supports for the S&P 500, along with Facebook and telecom rival AT&T.

Twitter shares fell 13.8 percent after the social media platform disappointed investors with stagnant monthly active user growth.

Declining issues outnumbered advancing ones on the NYSE by a 1.45-to-1 ratio; on Nasdaq, a 2.24-to-1 ratio favored decliners.

Additional reporting by Sinead Carew and Rodrigo Campos in New York, Tanya Agrawal in Bengaluru; Editing by Anil D'Silva and Nick Zieminski

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