* CSX slides after profit miss, weighs on rivals
* Abbott climbs after FY profit raise
* Qualcomm up as DoJ asks to pause antitrust ruling
* Indexes down: Dow 0.17%, S&P 0.28%, Nasdaq 0.14% (Changes comment, adds details, updates prices)
By Medha Singh and Uday Sampath Kumar
July 17 (Reuters) - U.S. stock indexes retreated for the second day on Wednesday as weak results from CSX Corp pressured railroad stocks and highlighted the wide-ranging impact of the long drawn out trade war between the United States and China.
Shares of CSX tumbled 10.3% and were set for their biggest one-day drop in nearly 17 years, after the company posted lower-than-expected quarterly profit and cut its full-year revenue forecast.
Rivals Union Pacific Corp slipped 4.7% and Kansas City Southern fell 3.9%. Both companies will report results this week.
Losses in CSX also pushed the Dow Jones Transport Average down 2.72%. The S&P 500 industrials, with a 1.21% decline, was the top loser among the 11 main sectors.
Since a sharp fall in May, Wall Street’s main indexes have trended higher to hit record highs on hopes that the Federal Reserve would cut interest rates at its policy meeting at the end of this month.
The market’s recent run-up on optimism around a Fed rate cut is likely why there is somewhat of a breather now, said Barry James, chief investment officer of advisory firm James Investment Research in Alpha, Ohio, adding that trade tensions remained an overhang.
“There’s still a lot of risk in the market like massive amounts going into passive rather than active managers and valuations being elevated, so we could run into potholes as we did back in December and May,” James said.
At 11:22 a.m. ET, the Dow Jones Industrial Average was down 47.70 points, or 0.17%, at 27,287.93, the S&P 500 was down 8.54 points, or 0.28%, at 2,995.50. The Nasdaq Composite was down 11.87 points, or 0.14%, at 8,210.92.
However, Abbott Laboratories rose 3.9% after the medical device maker topped quarterly profit estimates and lifted its full-year adjusted earnings forecast.
Bank of America Corp rose 1% after posting a profit beat, but the lender lowered its annual net interest income forecast.
This follows similar warning signs from JPMorgan, Citigroup and Well Fargo, which reported a dip in margins and stoked fears of interest rate cuts pressuring profit.
Profit for S&P 500 companies is expected to rise 0.4% in the second quarter from a year ago, according to Refinitiv IBES data. Of the 43 companies in the S&P 500 that have reported so far, 83.7% have beaten analysts’ estimates.
Qualcomm Inc rose 1.2% after the U.S. Justice Department asked a federal appeals court to pause the enforcement of a sweeping antitrust ruling against the mobile chip supplier.
The Philadelphia Semiconductor Index rose 0.56%, also helped by strong quarterly profit from Dutch chip equipment maker ASML .
Declining issues outnumbered advancers for a 1.62-to-1 ratio on the NYSE and for a 1.56-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and no new low, while the Nasdaq recorded 39 new highs and 67 new lows. (Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur and Saumyadeb Chakrabarty)