US STOCKS-Wall St dips as trade worries weigh; Netflix tumbles

* Netflix tumbles as U.S. subscribers drop
* Union Pacific rises after qtrly profit beat
* Morgan Stanley beats profit estimates
* Indexes dip: Dow 0.05%, S&P 0.09%, Nasdaq 0.20%

(Updates to open)
By Medha Singh
July 18 (Reuters) - U.S. stock indexes edged lower on
Thursday as investors awaited more developments around trade,
while Netflix posted a surprise drop in U.S. subscribers,
kicking off earnings for the FAANG group of stocks on a sour
note.
Shares of the streaming pioneer NFLX.O sank 11.3% and
weighed on the S&P 500 and the Nasdaq 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
.SPLRCL sector, one of the best-performing S&P sectors so far
this year, 1.20% lower.
"Netflix did nothing to soothe investor concerns around what
earnings prospects are likely to unfold over the next couple of
weeks," said Mark Luschini, chief investment strategist at
Janney Montgomery Scott in Philadelphia.
The disappointing earnings so far have amplified the
pressure on markets from trade worries, he said.
The three main Wall Street indexes have retreated slightly
from record highs this week as second-quarter earnings rolled
in.
"With the run we've had in the market, conditions have been
overbought and in that light the market have been right in
releasing some of that pressure from the rally."
In trade-related news, 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. Investors also await the Federal Reserve's policy meeting at
the end of July where expectations of an interest rate cut are
very high.
At 10:00 a.m. ET, the Dow Jones Industrial Average .DJI
was down 13.47 points, or 0.05%, at 27,206.38, the S&P 500
.SPX was down 2.60 points, or 0.09%, at 2,981.82. The Nasdaq
Composite .IXIC was down 16.07 points, or 0.20%, at 8,169.14.
International Business Machines Corp IBM.N reversed
premarket losses to rise 3% as its quarterly profit beat on
strong growth in its high-margin cloud business. Gains in IBM, along with those in Apple Inc AAPL.O , kept
the technology sector .SPLRCT afloat.
UnitedHealth Group Inc UNH.N fell 1.5% 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. Railroad operator Union Pacific Corp UNP.N jumped 4.9%
after it reported a profit beat, while tobacco company Philip
Morris PM.N gained 6.8% on raising its full-year profit
outlook. Morgan Stanley MS.N rose after reporting a
better-than-expected quarterly profit. Declining issues outnumbered advancers for a 1.87-to-1 ratio
on the NYSE and for a 1.45-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and four new
lows, while the Nasdaq recorded 16 new highs and 40 new lows.