US STOCKS-Wall St edges lower on UPS outlook, telecom shares rally
* UPS shares fall after outlook, weighs on transports
* Windstream rallies; set to spin off assets into REIT
* Merck up as results beat expectations, but Pfizer slips
* Indexes: Dow flat, S&P off 0.1 pct, Nasdaq up 0.2 pct (Updates to afternoon trading)
By Ryan Vlastelica
NEW YORK, July 29 (Reuters) - U.S. stocks mostly fell on Tuesday as a weak outlook from UPS weighed on sentiment and pressured transportation stocks, though other corporate results capped losses in equities.
United Parcel Service shares fell 3.1 percent to $99.47 after the world's biggest courier company slashed its earnings forecast for the year due to spending to boost capacity. It also reported earnings that were below expectations.
Rival shipping company FedEx Corp was down 0.8 percent at $148.36. The Dow Jones Transportation index, which is often viewed as a proxy for business activity, fell 0.7 percent. It is about 2.3 percent away from a record closing high hit last week.
UPS is the latest bellwether name to disappoint in its results, following Amazon.com Inc and Boeing Co last week. Nonetheless, this earnings season has largely been a positive for equities. With more than half the S&P 500 having reported, almost 70 percent have topped earnings expectations, according to Thomson Reuters data, well above the long-term average of 63 percent. More than 63 percent have topped revenue forecasts, above the long-term average of 61 percent. Continuación...