* Oil prices drop 1.3 pct
* Ford falls 10 pct, weighs most on S&P
* Indexes down: Dow 0.48 pct, S&P 0.25 pct, Nasdaq 0.03 pct (Adds details, comments, updates prices)
By Yashaswini Swamynathan
July 28 (Reuters) - The S&P 500 and the Dow edged lower on Thursday following weak economic data and a set of disappointing earnings from companies, including Ford.
Ford’s shares dropped 10 percent after the carmaker posted weak quarterly profit and declared that the U.S. auto industry’s long recovery was at an end. The stock was the biggest drag on the S&P 500 index.
Shares of General Motors fell more than 3 percent and Fiat Chrysler more than 4 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. Analysts had expected a rise to 260,000.
Energy shares took a hit after oil prices fell 1.3 percent. Exxon and Chevron dropped more than 1 percent.
However, a rise in Facebook shares after strong quarterly results limited losses on the Nasdaq.
Strong economic data had put Wall Street on a record-setting run in the past weeks, with the S&P 500 breaking its all-time high six times in 13 days.
“When you’ve got a one-way market, which we’ve had for several weeks, it is bound to consolidate or rest a bit,” said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management.
“You also have some negative earnings reports and oil prices are back on people’s mind as it approaches the $40 level.”
At 11:05 a.m. ET (1505 GMT) the Dow Jones Industrial Average was down 89.03 points, or 0.48 percent, at 18,383.14.
The S&P 500 was down 5.41 points, or 0.25 percent, at 2,161.17.
The Nasdaq Composite index was down 1.34 points, or 0.03 percent, at 5,138.47.
Eight of the 10 major S&P 500 sectors were lower, led by a 0.87 percent fall in the telecom services index.
Declining issues outnumbered advancing ones on the NYSE by 1,559 to 1,223. On the Nasdaq, 1,569 issues fell and 1,047 advanced.
The S&P 500 index showed 23 new 52-week highs and no new lows, while the Nasdaq recorded 81 new highs and 19 new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D‘Silva)