US STOCKS-S&P 500, Dow snap four-day winning streak as J&J vaccine worries weigh

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* Apple expected to launch four new iPhone models at virtual
event
* Amazon up as two-day 'Prime' shopping event gets underway
* Disney jumps as it restructures its media business
* Indexes: Dow down 0.5%, S&P slips 0.4%, Nasdaq up 0.1%

(Adds comment, details updates prices)
By Medha Singh and Shivani Kumaresan
Oct 13 (Reuters) - The Dow and the S&P 500 indexes fell on
Tuesday after a four-day winning streak as a pause in Johnson &
Johnson's COVID-19 vaccine trial spurred concerns about a full
economic rebound from the coronavirus-led downturn.
Johnson & Johnson JNJ.N shed 2.3% as it said it would take
"a few days" to review its halted clinical trial following an
unexplained illness in a study participant, possibly delaying
one of the most closely watched efforts to contain the global
pandemic. The S&P healthcare index .SPXHC slipped from a record high
hit in the prior session and weighed on broader markets as
vaccines are seen critical to stopping the pandemic, which has
sunk the economy to its worst recession in decades.
Some of the worst-hit companies due to the pandemic - cruise
line operators Carnival Corp CCL.N , Norwegian Cruise Line
Holdings NCLH. and hotel operator Wynn Resorts Ltd WYNN.O -
were among the top decliners on the S&P 500.
The J&J news is "an excruciating reminder of the
difficulties that the coronavirus has brought on the economy,"
said Eric Schiffer, chief executive officer of private equity
firm Patriarch Organization.
Adding to the negative tone, U.S. House Speaker Nancy Pelosi
rejected President Donald Trump's latest offer on COVID-19
stimulus, the latest sign that a bipartisan deal on coronavirus
relief remains unlikely ahead of the November election.
Hopes of more U.S. fiscal aid and a rally in tech
heavyweights led stocks higher on Monday, bringing the benchmark
S&P 500 and the tech-heavy Nasdaq within 2% of their record
highs hit in September after a pullback last month.
Apple Inc AAPL.O slipped 0.6% ahead of a virtual event
starting 1 p.m. ET (1700 GMT) where it is widely expected to
unveil four new iPhones. Shares of Amazon.com Inc AMZN.O , which have already surged
86% this year, added 1% as it began 48 hours of promotions as
part of "Prime Day" in an early start to the holiday shopping
season. Kicking off third-quarter earnings season, JPMorgan Chase &
Co JPM.N and Citigroup C.N surpassed analyst estimates for
quarterly profit on a surge in trading revenue. However, their
shares fell 1.5% and 3.9%, respectively. Bank stocks .SPXBK shed 2.3%. The index has widely
underperformed the S&P 500 in 2020 and analysts expect the
sector's earnings to take years to make a full recovery as
interest rates remain near record lows. Overall, analysts expect third-quarter earnings for S&P 500
firms to slide 19.6% from a year earlier, smaller than a 31%
tumble in the prior quarter.
At 10:52 a.m. ET, the Dow Jones Industrial Average .DJI
was down 128.82 points, or 0.45%, at 28,708.70, the S&P 500
.SPX was down 15.19 points, or 0.43%, at 3,519.03, and the
Nasdaq Composite .IXIC was up 9.72 points, or 0.08%, at
11,885.98.
Walt Disney Co DIS.N jumped 4.4% as it restructured its
media and entertainment businesses to accelerate growth of
Disney+ and other streaming services. Declining issues outnumbered advancers for a 2.88-to-1 ratio
on the NYSE and for a 1.85-to-1 ratio on the Nasdaq.
The S&P index recorded 27 new 52-week highs and one new low,
while the Nasdaq recorded 66 new highs and seven new lows.