US STOCKS-S&P 500, Dow fall on J&J vaccine worries; tech gains prop up Nasdaq

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* Apple to launch four new iPhone models at virtual event
* Amazon up as two-day 'Prime' shopping event gets underway
* Boeing slips on more 737 MAX cancellations, fall in
deliveries
* Indexes: Dow fell 0.35%, S&P dips 0.31%, Nasdaq up 0.16%

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By Medha Singh and Shivani Kumaresan
Oct 13 (Reuters) - The Dow and the S&P 500 fell on Tuesday
after a four-day winning streak as a pause in Johnson &
Johnson's COVID-19 trial triggered concerns about the timing of
a vaccine, although a rally in technology shares supported the
Nasdaq.
Johnson & Johnson JNJ.N shed 2% 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
results on 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
driven 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 -
fell between 3% and 7%.
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 1.1% ahead of a virtual event
starting 1 p.m. ET (1700 GMT) where it is widely expected to
unveil four new iPhone models. Amazon.com Inc AMZN.O shares, which have already surged
86% this year, added 1% as the company 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, Citi's results underscored deeper troubles in its
consumer bank that struggled with a decline in customers and
spending, sending its shares down 4%. JPMorgan was also down
1.1%, while the S&P 500 bank index .SPXBK shed 2%.
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 12:28 p.m. ET, the Dow Jones Industrial Average .DJI
was down 0.35% at 28,735.90 and the S&P 500 .SPX was down
0.31% at 3,523.23. The Nasdaq Composite .IXIC was up 0.16% at
11,894.92.
Boeing Co BA.N dropped 2% as it lost another three orders
for its grounded 737 MAX jet in September and delivered half the
number of aircraft from the same month a year earlier.
Declining issues outnumbered advancers for a 2.33-to-1 ratio
on the NYSE and for a 1.64-to-1 ratio on the Nasdaq.
The S&P index recorded 36 new 52-week highs and one new low,
while the Nasdaq recorded 94 new highs and eight new lows.