US STOCKS-S&P 500, Dow drop from record levels as coronavirus cases spike

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* Tesla set to add $40 bln to market cap
* Walgreen, CVS hammered by Amazon's online pharmacy foray
* Indexes down: Dow 1.2%, S&P 0.8%, Nasdaq 0.5%

(Updates to market open)
By Shivani Kumaresan and Medha Singh
Nov 17 (Reuters) - Wall Street's main indexes fell on
Tuesday with the S&P 500 and the Dow retreating from record
closing highs hit a day earlier, following disappointing retail
sales data and a spike in coronavirus cases across the country.
The Nasdaq's losses were limited by a 12% jump in Tesla
Inc's TSLA.O shares in anticipation of a $51 billion trade by
index funds adjusting their holdings when the electric-car maker
will be added to the benchmark S&P 500 in December. The Dow notched an all-time closing high on Monday,
finishing about 50 points shy of 30,000 after Moderna Inc's
MRNA.O promising COVID-19 vaccine data boosted hopes of an
economic recovery, overshadowing spiking coronavirus cases
across the country.
"There is conflict for the market between the near-term
direction to the economy, which is troubled with the very high
COVID-19 rates and the future for the market, that's which
vaccines could provide an end to the restrictions," said Rick
Meckler, partner at Cherry Lane Investments in New Vernon, New
Jersey.
New Jersey, California and Iowa imposed fresh restrictions
as the pandemic reached its most perilous point yet in the
United States, threatening to worsen as the colder weather sets
in. Latest data showed U.S. retail sales increased less than
expected in October and could slow further due to spiraling new
infections and a lack of fiscal support. At 09:51 a.m. ET the Dow Jones Industrial Average .DJI
fell 351.42 points, or 1.17%, to 29,599.02, the S&P 500 .SPX
lost 30.11 points, or 0.83%, to 3,596.80 and the Nasdaq
Composite .IXIC lost 53.51 points, or 0.45%, to 11,870.62.
Financials .SPSY , industrials .SPLRCI and energy .SPNY
stocks gave back some gains made over the last week as positive
updates from U.S. vaccine trials encouraged investors to
diversify into value stocks on hopes they will benefit from a
pickup in the economy.
Amazon.com Inc AMZN.O rose 1.2% after it launched an
online pharmacy for delivering prescription medications in the
United States. Drug retailers such as Walgreens Boots Alliance
Inc WBA.O tumbled 8.7%, while CVS Health Corp CVS.N fell
7.5% on the news. Warren Buffett's Berkshire Hathaway Inc BRKa.N disclosed
new stakes worth $5.7 billion in drugmakers Abbvie Inc ABBV.N ,
Bristol-Myers Squibb Co BMY.N , Merck & Co MRK.N and Pfizer
Inc PFE.N , lifting their shares between 1.4% and 2.4%.
Retail earnings is in focus this week as the third-quarter
earnings season enters its tail end. Walmart Inc WMT.N posted
a bigger-than-expected increase in quarterly same-store sales.
However, its shares fell 0.8% after rallying 28% this year.
Declining issues outnumbered advancers by 3.4-to-1 on the
NYSE; on Nasdaq, a 0.3-to-1 ratio favored decliners.
The S&P 500 posted seven new 52-week highs and no new low,
while the Nasdaq Composite recorded 49 new highs and three new
lows.