CORRECTED-US STOCKS-Wall Street dips as Tesla, 3M weigh; big tech earnings in focus

(In fourth paragraph corrects to show that market cap for
Microsoft, Alphabet, Apple, Facebook and Amazon together
comprise 22% of S&P 500 market value, not 40%)
* Tesla slips, weighs most on S&P 500 and Nasdaq
* 3M slides on warning of higher costs
* UPS jumps as revenue tops expectations
* Indexes down: Dow 0.06%, S&P 0.01%, Nasdaq 0.17%

By Medha Singh and Sruthi Shankar
April 27 (Reuters) - Lackluster results from Tesla and 3M
dragged Wall Street's main indexes lower on Tuesday, shifting
investor focus to earnings from big technology companies,
including Microsoft and Alphabet, later in the day.
Electric-car maker Tesla Inc TSLA.O dropped 3%, weighing
on the S&P 500 .SPX and the Nasdaq .IXIC , as its revenue
beat was largely supported by sales of environmental credits and
bitcoin liquidation rather than vehicle sales.
"Tesla is a special case. A lot of the gains for the company
were driven by its bitcoin bet, which is a sideline. It's good
that it sold a lot of cars, but it didn't make a lot of money
from the cars," said Kim Forrest, chief investment officer at
Bokeh Capital Partners in Pittsburgh.
Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O slipped,
while shares of Apple Inc AAPL.O , Facebook Inc FB.O and
Amazon.com Inc AMZN.O , slated to report later this week, were
mixed. The five companies combined account for about 22% of the
S&P 500's market capitalization.
"When you come in to earnings season with companies that are
near all-time highs, the reaction function is difficult," said
Art Hogan, chief market strategist at National Securities in New
York.
"A great example of that is Tesla. For most parts the
company blew past expectations, but the reaction to that is down
and I suspect that could be the case for companies reporting
after the close today. The markets are really preparing
themselves for that."
Shares of 3M Co MMM.N fell 3.3% after the conglomerate
said supply chain disruptions from the COVID-19 pandemic and the
February winter storm were pushing up its costs. First-quarter overall earnings for S&P 500 companies are
expected to jump 35.1% from a year earlier, according to
Refinitiv IBES data.
The S&P 500 and the Nasdaq ended at record levels on Monday,
and have mainly been supported by ebbing inflation worries,
improving economic data, swift vaccine distribution along with
unprecedented monetary and fiscal measures.
Meanwhile, investors will monitor the Federal Reserve's
two-day meeting for cues on the central bank's thinking on
inflation, bond buying and risks to the financial system posed
by soaring asset prices. The Fed is not expected to change its
policy guidance at the end of the meeting on Wednesday.
In the latest upbeat economic data, U.S. consumer confidence
jumped to a 14-month high in April as more services businesses
reopened on increased vaccinations and additional fiscal
stimulus. At 11:53 a.m. ET, the Dow Jones Industrial Average .DJI
was down 20.49 points, or 0.06%, at 33,961.08, the S&P 500
.SPX was down 0.42 points, or 0.01%, at 4,187.20 and the
Nasdaq Composite .IXIC was down 23.41 points, or 0.17%, at
14,115.37.
In other corporate results, United Parcel Service Inc
UPS.N jumped 10.5% after it topped estimates for quarterly
revenue. General Electric GE.N fell 3.5% as it disappointed
investors who were expecting the industrial conglomerate to
upgrade its 2021 outlook. Advancing issues outnumbered decliners by a 1.20-to-1 ratio
on the NYSE and by a 1.01-to-1 ratio on the Nasdaq.
The S&P index recorded 41 new 52-week highs and no new lows,
while the Nasdaq recorded 107 new highs and 10 new lows.