* IMF cuts global growth view for second time
* Nasdaq biotech index down 4 pct
* DuPont jumps after CEO resigns
* Yum! Brands expected to report results after the bell
* Indexes: Dow up 0.21 pct, S&P down 0.28 pct, Nasdaq down 0.67 pct (Updates to afternoon trade)
By Noel Randewich
Oct 6 (Reuters) - U.S. stocks fell on Tuesday as healthcare companies lost ground and investors eyed upcoming quarterly reports that are expected to show a dip in corporate earnings.
A surge in DuPont’s stock helped keep the Dow Jones industrial average in positive territory but the S&P 500 and Nasdaq lost ground, with a sharp drop in biotech stocks.
The S&P health index lost 2.2 percent, the worst performer among the ten major S&P sectors. The sector has been under intense scrutiny over high drug prices.
The Nasdaq biotechnology index dropped 4 percent. At one point the index was down 6.6 percent, set for its biggest intraday drop since August 2011.
The S&P 500 index had gained 5.6 percent over the previous five sessions, its best 5-day run since 2011, helped in part by a weak U.S. jobs report that lowered expectations the Federal Reserve will raise interest rates this year.
“What we’re getting today is quite frankly just people taking some chips off table after a five-day rally,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.
The International Monetary Fund cut its global growth forecasts for a second time this year, citing weak commodity prices and a slowdown in China.
S&P 500 companies are expected to report a 4.2-percent fall in earnings in the third quarter, the biggest decline in six years, according to Thomson Reuters data.
Low expectations for corporate earnings may set companies up to outperform, said Carlson. He said, stock reactions to upcoming earnings report cards may provide signs of whether the market has hit rock bottom after over a month of global financial turbulence.
At 2:53 p.m., the Dow Jones industrial average rose 0.21 percent to 16,812.16 and the S&P 500 lost 0.28 percent to 1,981.49. The Nasdaq Composite dropped 0.67 percent to 4,749.05.
Half of the ten major S&P sectors were lower. The energy index was up 2.3 percent, leading the advancers, after crude oil prices jumped.
DuPont rose 8.4 percent after CEO Ellen Kullman said she would step down.
UnitedHealth Group fell 3.4 pct, the biggest drag on the S&P health index.
Pepsi rose 1.4 percent after it reported better-than-expected quarterly results and raised its forecast for the year.
After the bell, restaurant operator Yum! Brands is expected to post quarterly results.
Advancing issues outnumbered decliners on the NYSE by 1,625 to 1,382. On the Nasdaq, 1,596 issues fell and 1,147 advanced.
The S&P 500 index showed six new 52-week highs and no new lows, while the Nasdaq recorded 31 new highs and 38 new lows. (Additional reporting by Abhiram Nandakumar and Tanya Agrawal in Bengaluru; Editing by Savio D‘Souza and Nick Zieminski)