U.S. stocks traded little changed in late morning session on Thursday, struggling to hold on to the record highs on the S&P and the Nasdaq, weighed by a drop in consumer discretionary stocks and disappointing earnings by some big names.
Home Depot fell 4.1 percent, shaving off 45 points off the Dow and weighing the most on the S&P 500.
Sears soared 20 percent after the retailer said it would sell its Kenmore home appliances on Amazon.com and integrate the brand`s smart gadgets with the online giant`s Alexa digital assistant.
The news, however, dragged down the shares of fellow retailer Best Buy by 4 percent.
Cigarette maker Philip Morris was down 2.8 percent after its quarterly profit missed expectations and was among the top drags on the S&P.
Qualcomm fell 4.7 percent after the chipmaker`s forecast missed estimates.
Still, overall earnings continue to beat expectations which, along with a rally in technology shares, helped all three major indexes to close at a record high on Wednesday.
Analysts are estimating an 8.7 percent rise in second-quarter earnings and a 4.6 percent increase in revenue for the S&P 500 companies from a year earlier, according to Thomson Reuters I/B/E/S.
Visa, Microsoft and eBay are due to report results after the closing bell.
"Earnings are going to surprise to the upside and so far it`s been good," said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company.
"I think the one thing that`s changed is now we`re getting revenue growth because in many cases the world is doing better. That`s the big change to the economy over the past year and that`s what will keep the fire burning in the future."
At 10:58 a.m. ET (1458 GMT), the Dow Jones Industrial Average was down 11.64 points, or 0.05 percent, at 21,629.11, the S&P 500 was up 0.92 points, or 0.03 percent, at 2,474.75.
The Nasdaq Composite was down 2.66 points, or 0.04 percent, at 6,382.38.
Six of the 11 major S&P sectors were higher, with the telecommunications index`s 0.60 percent rise leading the advancers.
Economic data showed weekly jobless claims fell to a five-month low. Claims fell to 233,000, below the 245,000 expected by economists polled by Reuters.
Abbott Laboratories rose 1.9 percent after the healthcare company raised its full-year profit forecast.
Property and casualty insurer Travelers was down 2.2 percent after reporting a drop in quarterly profit.
Advancing issues outnumbered decliners on the NYSE by 1,472 to 1,231. On the Nasdaq, 1,337 issues rose and 1,271 fell.