US STOCKS-S&P 500, Dow slip on worries about earnings, U.S. stimulus outlook

* Xilinx jumps on $35 bln buyout deal from AMD
* Eli Lilly still optimistic after COVID-19 trial set-back
* Microsoft gains ahead of big tech results this week
* Indexes: Dow down 0.5%, S&P down 0.1%, Nasdaq up 0.6%

(New throughout, updates prices, market activity and comments
to market close)
By Herbert Lash
NEW YORK, Oct 27 (Reuters) - Stocks on Wall Street closed
little changed on Tuesday, with the Dow and S&P 500 dipping on
disappointing earnings and little hope for a U.S. coronavirus
stimulus before Election Day, though the Nasdaq rose ahead of
big technology company results.
Investor sentiment sagged after the White House said a deal
on COVID-19 relief could come in "weeks," meaning a deal is
unlikely before the Nov. 3 election. But the tech-heavy Nasdaq rose as Microsoft Corp MSFT.O
firmed in the run-up to its results after the closing bell, and
the technology heavyweights supported the S&P500.
Shares of drugmaker Eli Lilly and Co LLY.N fell after
quarterly profits took a hit from increased costs to develop a
COVID-19 treatment and after a trial of its antibody therapy
failed to show a benefit in hospitalized patients. "This pullback that we've seen is a little bit more of a
risk-off move as an additional stimulus package now has been
pushed aside," Kevin Flanagan, head of fixed income strategy at
WisdomTree Investments, said. "That led to some disappointment."
On Monday, the three major U.S. stock indexes posted their
biggest declines in about four weeks on a record number of new
coronavirus cases in the United States and some European
countries, and as the elusive stimulus rattled investors.
Sectors sensitive to economic growth took a hit, with both
the S&P 500 banks index .SPXBK and the S&P energy sector
.SPNY closing lower.
Meanwhile, Wall Street's fear gauge .VIX hovered at its
highest level since early September on election jitters.

Democratic challenger Joe Biden leads President Donald Trump
in nationwide polls but the race is much tighter in battleground
states which should determine the outcome.
Unofficially, the Dow Jones Industrial Average .DJI fell
221.37 points, or 0.8%, to 27,464.01, the S&P 500 .SPX lost
10.23 points, or 0.30%, to 3,390.74 and the Nasdaq Composite
.IXIC added 72.41 points, or 0.64%, to 11,431.35.
The Nasdaq rose in anticipation of results later this week
from Apple Inc AAPL.O , Amazon.com AMZN.O , Google-parent
Alphabet GOOGL.O and Facebook Inc FB.O . The tech bellwethers
together account for about a fifth of the S&P 500's total
value. The NYSE FANG+TM Index .NYFANG rose about 1.69%.
Analysts expect the tech sector to post a 0.4% increase in
third-quarter earnings from a year earlier, while overall S&P
500 profit is forecast to fall 16.2%, according to Refinitiv
data.
Concerns over a rise in U.S. coronavirus cases are weighing
on the market but the technology sector seems to be the least
exposed, said Rick Meckler, a partner at Cherry Lane Investments
in New Vernon, New Jersey.
"A focus on big technology companies may move this market to
rally despite the problems the virus is creating," he said.
Semiconductor designer Advanced Micro Devices Inc AMD.O
fell as it agreed to buy Xilinx Inc XLNX.O in a $35 billion
all-stock deal. Xilinx shares soared, the largest gainer on the
Nasdaq 100, while those of AMD-rival Intel INTC.O fell.
Insurer American International Group Inc AIG.N gained
after its board named Peter Zaffino as chief executive officer
and approved a plan to separate the life and retirement business
from the rest of the company.