* Home Depot top stock on Dow after profit beat
* Pfizer down after Citi cuts to "sell"
* Microsoft leads technology sector gainers
* Dow up 0.06 pct, S&P down 0.03 pct, Nasdaq up 0.19 pct
(Updates to early afternoon)
By Yashaswini Swamynathan
May 16 U.S. stocks pulled back on Tuesday after
the S&P 500 and the Nasdaq Composite hit record intraday highs
as a decline in healthcare stocks offset gains in technology.
The main indexes have been trading near record levels,
supported largely by strong first-quarter earnings, but global
geopolitical tensions and developments in Washington could
unsettle the market's record-setting spree.
Investors turned cautious after reports that President
Donald Trump disclosed highly classified information to Russia's
foreign minister about a planned Islamic State operation.
The latest development could distract the Trump
administration from its priorities such as tax reform,
healthcare and simpler regulations.
Analysts, however, played down the potential impact to the
"This kind of backdrop is very conducive to stock-pickers
and that is helping drive idiosyncratic positions across
markets," said Matt Miskin, senior capital markets research
analyst at John Hancock Investments in Boston, Massachusetts.
"As long as we have growth, whether it is earnings or
economic data, the markets are likely to be able to take such
(political) headlines in stride."
Home Depot's better-than-expected first-quarter
performance drove the stock up 1.4 percent, providing the
biggest boost to the Dow. Smaller rival Lowe's was up
A report from the Federal Reserve showed U.S. factory output
in April rose at its fastest clip in three years, supporting a
view that economic growth was rebounding in the second quarter
after a sluggish start to the year.
At 12:41 p.m. ET (1641 GMT), the Dow Jones Industrial
Average was up 12.53 points, or 0.06 percent, at
The S&P 500 was down 0.77 points, or 0.03 percent, at
2,401.55, easing from an all-time high of 2,405.77.
The Nasdaq Composite was up 11.70 points, or 0.19
percent, at 6,161.37, after touching a record of 6,162.71.
Five of the 11 major S&P 500 sectors were lower, led by a
0.4 percent decline in healthcare. Technology
was up 0.27 percent, helped by Microsoft, and the rest
Pfizer was down 1.7 percent at $32.54 after
Citigroup downgraded the drug developer's stock to "sell" from
Staples was off 3.6 percent and was the top
percentage loser on the S&P 500 after the office supplies
retailer reported a decline in quarterly sales.
Declining issues outnumbered advancers on the NYSE by 1,610
to 1,176. On the Nasdaq, 1,552 issues fell and 1,208 advanced.
The S&P 500 index showed 55 new 52-week highs and 12 new
lows, while the Nasdaq recorded 104 new highs and 49 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by