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* Apple gains on electric car production plan
* Peloton jumps on $420 mln deal to buy peer Precor
* Indexes: Dow down 0.39%, S&P down 0.09%, Nasdaq up 0.45%
(Updates to market open)
By Ambar Warrick and Devik Jain
Dec 22 (Reuters) - The Nasdaq was propped up by Apple on
Tuesday following a report that the iPhone maker was planning
car and battery production, while the Dow and the S&P 500
slipped on weak consumer confidence and home sales readings.
Shares of Apple Inc AAPL.O were up 3.8% in early trading
after Reuters exclusively reported that the company was moving
forward with self-driving car technology and was targeting 2024
to produce a passenger vehicle that could include its own
breakthrough battery technology. U.S. home sales fell more than expected in November, while
consumer confidence unexpectedly declined this month following a
spike in U.S. infections and deaths.
The data added to concerns of further economic disruption
from a new coronavirus variant raging in Britain that has pushed
the country into effective COVID-19 quarantine.
Meanwhile, investors digested the passing of a much-awaited
$892 billion relief bill, which is set to inject fresh liquidity
into the economy. "While the virus news continues to overshadow from time to
time, the market is probably going to resume its upward trend,
and that's probably because relief is coming for the economy,"
said Peter Cardillo, chief market economist at Spartan Capital
Securities in New York.
"With two-and-a-half trading days before Christmas holidays,
I think stocks will probably creep their way higher."
Trading activity is expected to be subdued in the last two
weeks of the year.
At 10:26 a.m. ET, the Dow Jones Industrial Average .DJI
was down 117.59 points, or 0.39%, at 30,098.86, the S&P 500
.SPX was down 3.48 points, or 0.09%, at 3,691.44, and the
Nasdaq Composite .IXIC was up 57.80 points, or 0.45%, at
12,800.31.
Ten of the 11 major S&P subsectors were trading lower, with
technology stocks .SPLRCT the sole gainers.
Electric-car maker Tesla Inc TSLA.O fell 2.6% after
slumping more than 6% in its first day of trading as part of the
S&P 500 .SPX on Monday. Amgen Inc AMGN.O fell 2.5% and was among the top drags on
the Dow, after it said its experimental asthma drug tezepelumab
developed with British drugmaker AstraZeneca Plc AZN.L failed
to meet the main goal of a late-stage asthma study. Peloton Interactive Inc PTON.O jumped 12.9% as brokerages
raised their price targets on the stock, a day after the
exercise bike maker said it would buy peer Precor in a $420
million deal to boost its U.S. manufacturing capacity and market
share for fitness products. Advancing issues outnumbered decliners by a 1.10-to-1 ratio
on the NYSE, and by a 1.45-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and no new low,
while the Nasdaq recorded 240 new highs and 5 new lows.