US STOCKS-S&P 500 set to snap winning streak as labor market rebound slows

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* Twitter jumps as usage soars
* Microsoft falls as cloud unit revenue growth slows
* Tesla rises after posting quarterly profit
* Indexes: Dow dips 0.19%, S&P flat, Nasdaq up 0.06%

(Updates to open)
By Medha Singh and Devik Jain
July 23 (Reuters) - The S&P 500 struggled for direction on
Thursday, following four straight days of gains as investors
held out for a new coronavirus relief package, with latest data
showing signs that a recovery in the labor market was stalling.
The number of Americans filing for unemployment benefits
rose last week for the first time in nearly four months against
the backdrop of a resurgence in coronavirus cases, the Labor
Department's data showed. "The monetary taps are on and are likely to remain so while
unemployment is so high, and this should continue to support
markets," said Geir Lode, head of global equities, International
at Federated Hermes in London.
U.S. Treasury Secretary Steve Mnuchin said the White House
was interested in getting a trillion-dollar coronavirus relief
bill out quickly and was working with Senate Republicans to
hammer out language on extending enhanced unemployment
benefits. Optimism about a potential vaccine, fiscal stimulus and
improving economic data has helped the benchmark S&P 500 recoup
most of its virus-induced losses and rise 1.4% this year. The
blue-chip Dow is still down about 5% year-to-date, while the
tech-heavy Nasdaq .IXIC has climbed about 19%.
Of the 75 S&P 500 companies that have reported quarterly
results, 77.3% of them have beaten dramatically lowered profit
estimates, according to IBES Refinitiv data.
Microsoft Corp MSFT.O fell 1.2%, weighing the most on the
S&P 500 and Nasdaq, as its flagship cloud computing business
Azure reported quarterly sales growth of under 50% for the first
time ever. Tesla Inc TSLA.O rose 1.5% after posting a fourth
consecutive quarterly profit, clearing a hurdle that could lead
to the electric carmaker's inclusion in the S&P 500 index
.SPX . Twitter Inc TWTR.N jumped 5.7% as it reported a record
yearly growth in daily users even as its ad sales sank.
"Many continue to believe there will be a V-shaped recovery,
although it remains too early to say whether the earnings season
will add weight to that view or not," Lode added.
At 10:03 a.m. ET, the Dow Jones Industrial Average .DJI
was down 51.44 points, or 0.19%, at 26,954.40, the S&P 500
.SPX was up 1.32 points, or 0.04%, at 3,277.34. The Nasdaq
Composite .IXIC was up 6.20 points, or 0.06%, at 10,712.33.
Travelers Cos Inc's TRV.N 2.9% decline weighed the most on
the Dow after the property and casualty insurer reported a
second-quarter loss. Home builder PulteGroup Inc PHM.N jumped 11.5% after
posting a higher quarterly profit. Shares of American Airlines AAL.O and Southwest Airlines
LUV.N slipped after the carriers said they were rethinking the
number of flights they had planned to add to their schedules for
August and September, as COVID-19 cases spike in some parts of
the United States. The broader S&P 1500 airlines index .SPCOMAIR fell 1.3%.
Advancing issues outnumbered decliners for a 1.22-to-1 ratio
on the NYSE and a 1.54-to-1 ratio on the Nasdaq.
The S&P index recorded 41 new 52-week highs and no new low,
while the Nasdaq recorded 57 new highs and four new lows.