* SpaceX falls after reporting first earnings since going

public

* Amgen ( AMGN ), Disney ( DIS ) help lift Dow

* ADP data shows US economy added 44,000 jobs in July

(Updates to market close)

By Chuck Mikolajczak and Johann M Cherian

NEW YORK, Aug 5 (Reuters) - The Dow closed at a record on

Wednesday on signs of progress for a peace deal with Iran, while

the Nasdaq saw its first decline in five sessions as SpaceX and

AMD stumbled following their quarterly earnings.

A proposed deal between Iran and Oman would give Tehran control

over ships entering the Gulf through the Strait of Hormuz, a

senior Iranian source and two regional officials told Reuters,

in one of the biggest concessions yet to Iran.

Stocks rallied to start the week, with the Dow and S&P 500

closing at records on Tuesday, as oil prices and U.S. Treasury

yields dropped on hopes peace talks could lead to a deal, easing

inflation pressures and lowering expectations for a rate hike

from the Federal Reserve.

"It's just a straight rocket shot that we've gone up, we

didn't even take a breath," said Kenny Polcari, chief market

strategist at Slatestone Wealth in Jupiter, Florida.

"It's progress, but the market's just going, we're not going

to give it to you this time until we actually see the progress,

because how many times have we been jerked around over the last

four months?"

According to preliminary data, the S&P 500

lost 13.33 points, or 0.17%, to end at 7,723.19 points,

while the Nasdaq Composite lost 225.32 points, or 0.85%,

to 26,359.67. The Dow Jones Industrial Average

rose 264.04 points, or 0.49%, to 54,349.92.

SPACEX SHARES TUMBLE ON AI SPENDING CONCERNS

Elon Musk-led SpaceX's revenue nearly doubled and

operating losses narrowed in its first earnings report since

going public, fueled by its booming Starlink satellite

communications and AI businesses, but shares tumbled on concerns

about how long the company could maintain spending on AI-related

investments such as data centers.

Shares could face additional pressure from the expiry of the

stock's post-IPO lock-up period starting on Thursday.

Advanced Micro Devices ( AMD ) forecast quarterly revenue above

estimates, reflecting strong AI demand. However, shares dropped

as investors look for greater evidence the massive AI spending

will result in faster growth.

A gain in Amgen ( AMGN ) helped buoy the Dow, as second-quarter

sales for the drugmaker rose 9%. Rival Eli Lilly ( LLY ) also

advanced after raising its full-year revenue forecast and the

S&P 500 healthcare closed as one of the best-performing

sectors on the session.

Also helping to boost the Dow was a rise in Disney ( DIS )

shares after beating third-quarter profit expectations.

ADP PRIVATE PAYROLLS GROWTH SLOWS

On the data front, U.S. private payrolls growth slowed in July,

as per the ADP national employment report. The data was the

second in a string of reports on the labor market this week

before Friday's government payrolls report.

Separately, the Institute for Supply Management said its

nonmanufacturing purchasing managers index inched up to 54.1

last month from 54.0 in June, below the 54.5 estimate of

economists polled by Reuters but above the 50 threshold that

signals growth.

Data has largely reflected a stable labor market, but the

war with Iran that began at the end of February has kept

concerns about price pressures and the Fed's response to it as a

primary concern among investors.

Minneapolis Fed President Neel Kashkari said in an interview

with CNBC that he believed now is the time to start slowly

moving interest rates higher. Federal Reserve Board Governor

Lisa Cook and San Francisco Fed President Mary Daly are

scheduled to speak later in the day.

Expectations for a rate hike from the central bank at its

September meeting have dipped to 54.9%, according to CME

FedWatch, down from 58.3% a week ago.