US STOCKS-Wall St dragged down by weak data, Ford results
* Oil prices drop 2 pct
* Ford falls 10 pct, weighs most on S&P
* Indexes down: Dow 0.4 pct, S&P 0.2 pct, Nasdaq 0.05 pct (Updates to early afternoon)
By Yashaswini Swamynathan
July 28 (Reuters) - The S&P 500 index and the Dow edged lower on Thursday as investors fretted about weak economic data and disappointing earnings from Ford.
The carmaker reported weak China sales and declared that the U.S. auto industry's long recovery was at an end, triggering a 9.6 percent fall in its shares. The stock was the biggest drag on the S&P 500 index.
Ford's dismal forecast rattled the automobile market, with shares of General Motors falling 4 percent and Fiat Chrysler 6 percent.
A report by the U.S. Labor Department showed that the number of people claiming unemployment benefits rose more than expected to 266,000 for the week ended July 22.
Energy shares took a hit after oil prices fell 2 percent. Exxon and Chevron dropped more than 1 percent. Continuación...