* Harley-Davidson falls after cutting shipments forecast
* Netflix hits record high on robust subscriber growth
* Dow down 0.46 pct, S&P off 0.14 pct, Nasdaq up 0.07 pct (Adds details, changes comment, updates prices)
By Tanya Agrawal
July 18 (Reuters) - The S&P and the Dow were lower in late morning trading on Tuesday, weighed by tepid earnings from big banks and a setback to President Donald Trump’s pro-growth legislative agenda after Republican effort to overhaul healthcare collapsed.
Losses on the Nasdaq were limited by a 12 percent jump in Netflix to a record high, following the video streaming company’s robust subscriber growth.
Shares of Bank of America slipped 1.6 percent weighing on the S&P, while Goldman Sachs’ 2.6 percent fall dragged the Dow.
Last week, shares of JPMorgan, Wells Fargo and Citigroup had taken a beating after their quarterly results and forecasts failed to excite investors.
The S&P healthcare sector was under pressure, falling 0.52 percent, after the healthcare bill to replace Obamacare sank in the Senate, as Republicans remained divided on how to repeal and replace the Affordable Care Act.
The failure of the bill spelled uncertainty for President Donald Trump’s agenda of tax reform and an infrastructure overhaul, leaving the president without any major legislative accomplishments six months into his tenure.
“The healthcare bill not coming through raises some continued concerns about the ability of Washington to push through favorable fiscal policies,” said Lisa Kopp, head of traditional investments at U.S. Bank Wealth Management.
News about the bill’s collapse sent the U.S. dollar to a 10-month low against a basket of major currencies.
UnitedHealth Group fell 0.8 percent and along with Goldman Sachs, shaved off 51 points from the Dow.
At 11:04 a.m. ET (1504 GMT), the Dow Jones Industrial Average was down 98.46 points, or 0.46 percent, at 21,531.26, the S&P 500 was down 3.54 points, or 0.14 percent, at 2,455.60.
The Nasdaq Composite was up 4.29 points, or 0.07 percent, at 6,318.72.
Seven of the 11 major S&P 500 sectors were lower, with the financial index’s 0.61 percent fall leading the decliners.
The market will be keeping a close eye on corporate results to see if the high valuations are justified in the face of mixed economic data, tepid inflation and policy gridlock in Washington.
“With valuation where they are, it is really important for earnings to come through for the market to retain their momentum and push upwards,” said Kopp.
Analysts are estimating an 8.2 percent rise in second-quarter earnings for the S&P 500 companies from a year earlier.
This follows a robust first quarter when U.S. companies posted their best earnings since 2011, according to Thomson Reuters I/B/E/S.
Harley-Davidson slumped 9.5 percent after the motorcycle maker cut its 2017 shipments forecast. [nL3N1K93ZT
Declining issues outnumbered advancers on the NYSE by 1,728 to 1,008. On the Nasdaq, 1,747 issues fell and 931 advanced. (Reporting by Tanya Agrawal; Editing by Arun Koyyur)