US STOCKS-Tech titans drag Wall St lower as virus cases mount

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* Disney falls after postponing "Mulan" release indefinitely
* Intel hits four-month low
* Goldman Sachs up after $3.9 bln settlement for 1MDB
dispute
* Indexes down: Dow 0.41%, S&P 0.58%, Nasdaq 1.32%

(Updates to open)
By Medha Singh
July 24 (Reuters) - Wall Street's main indexes dropped on
Friday as Sino-U.S. tensions and fears over rising COVID-19
cases weighed on investor sentiment, erasing all gains for the
benchmark S&P 500 index this week.
Technology stocks were the biggest drag on all the three
main indexes with high-flying companies Apple Inc AAPL.O ,
Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O , which were
pivotal in driving the stock market's recovery in recent months,
down between 0.8% and 1.9%.
The technology index fell 1.6%, more than any other S&P
sector.
For three straight days, the United States recorded more
than 1,100 deaths related to the novel coronavirus on Thursday,
which has infected about 4 million Americans. Walt Disney Co DIS.N postponed the debut of its movie
"Mulan" indefinitely, sending its shares down 0.4%. Intel Corp INTC.O tumbled 16.9% after the company said it
was six months behind schedule in developing next-generation,
power-efficient chip technology and that it would consider
farming out more work to outside semiconductor foundries.
Rival Advanced Micro Devices Inc AMD.O gained 11.6%, but
the broader Philadelphia semiconductor index dropped 1.3%.
The S&P 500 pulled back from a five-month high on Thursday,
weighed down by losses in technology stocks, a surprise increase
in U.S. jobless claims and Washington's tug-of-war over stimulus
measures.
"The question persists of how the recovery will maintain its
momentum as virus cases continue to increase," said Keith
Buchanan, portfolio manager at GLOBALT Investments in Atlanta.
"There has been a push to pull back some of the reopenings
in states and municipalities and since then focus has shifted to
the earnings season, but the virus is still focus no.1."
Latest survey showed U.S. business activity increased to a
six-month high in July, but companies reported a drop in new
orders as a resurgence in new COVID-19 cases weighed on demand.
Optimism about a potential coronavirus vaccine and fiscal
stimulus package had helped the benchmark S&P 500 recoup all of
its losses for the year.
Sentiment took a hit earlier in the day after Beijing
ordered Washington to close its consulate in the city of
Chengdu, days after U.S. ordered the closure of the Chinese
consulate in Houston. At 10:08 a.m. ET, the Dow Jones Industrial Average .DJI
was down 109.47 points, or 0.41%, at 26,542.86, the S&P 500
.SPX was down 18.68 points, or 0.58%, at 3,216.98. The Nasdaq
Composite .IXIC was down 138.00 points, or 1.32%, at
10,323.42.
Of the 113 S&P 500 companies that have reported quarterly
results, 77% of them have beaten dramatically lowered profit
estimates, according to IBES Refinitiv data.
Credit card issuer American Express Co AXP.N slipped 0.6%
after it reported an 85% slump in quarterly profit. U.S. investment bank Goldman Sachs Group Inc GS.N rose
0.7% after reaching a $3.9 billion settlement with the Malaysian
government over the multi-billion-dollar 1MDB scandal.
Declining issues outnumbered advancers for a 1.74-to-1 ratio
on the NYSE and a 2.51-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low,
while the Nasdaq recorded 10 new highs and 10 new lows.