* Netflix tumbles as U.S. subscribers drop
* Union Pacific rises after qtrly profit beat
* Morgan Stanley beats profit estimates
* Indexes: Dow 0.22%, S&P 0.07%, Nasdaq 0.31% (Changes comment, adds details, updates prices)
By Medha Singh and Uday Sampath Kumar
July 18 (Reuters) - Wall Street’s main indexes edged lower on Thursday as investors digested a slew of mixed earnings, while Netflix reported a surprise fall in U.S. subscribers in a downbeat start to results from high-growth companies.
Shares of the streaming pioneer sank 11.4% to their lowest since late-January at $321.10, as the company also missed targets for new subscribers overseas at a time when it has staked its future on global expansion.
Losses in Netflix also dragged the communication services sector, one of the best-performing S&P sectors so far this year, 1.28% lower.
“The stock market seems to be running out of energy,” said John Augustine, chief investment officer of Huntington Private Bank in Columbus, Ohio.
“Earnings have met expectations but companies are being cautious about future quarters, which is something that’s not able to keep the S&P 500 above the 3,000 level.”
As second-quarter earnings rolled in this week, the three main Wall Street indexes retreated slightly from record highs and are set for their steepest weekly fall in seven weeks.
Investors are looking for concrete developments in trade talks between United States and China, while they await the Federal Reserve’s policy meeting at the end of July where the central bank is widely expected to cut interest rates.
U.S. Treasury Secretary Steven Mnuchin said U.S. and Chinese officials will hold a telephone call later on Thursday that could pave the way for further in-person trade talks.
At 11:13 a.m. ET, the Dow Jones Industrial Average was down 58.66 points, or 0.22%, at 27,161.19, the S&P 500 was down 2.14 points, or 0.07%, at 2,982.28. The Nasdaq Composite was down 25.62 points, or 0.31%, at 8,159.59.
Among positive earnings reports, tobacco company Philip Morris climbed 7.3% after raising its full-year profit outlook, while railroad operator Union Pacific Corp jumped 4.8% after reporting a profit beat.
International Business Machines Corp rose 3.9% as its quarterly profit beat on strong growth in its high-margin cloud business.
Gains in IBM, along with those in Apple Inc, kept the technology sector afloat.
Morgan Stanley rose 0.4% after posting a better-than-expected quarterly profit and wrapped up earnings from big U.S. banks. The bank subsector was up 0.8% after three days of losses.
UnitedHealth Group Inc fell 2.2% following comments that the insurer would continue with its point-of-sale rebates, a week after the Trump administration pulled back an ambitious proposal to ban drug rebates.
Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and for a 1.05-to-1 ratio on the Nasdaq.
The S&P index recorded 18 new 52-week highs and four new lows, while the Nasdaq recorded 39 new highs and 63 new lows. (Reporting by Medha Singh and Uday Sampath in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila)