* SpaceX falls after reporting first earnings since going

public

* Eli Lilly ( LLY ) climbs after raising FY revenue forecast

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

* Indexes: Dow up 0.83%, S&P up 0.07%, Nasdaq off 0.49%

(Updates to afternoon trading)

By Chuck Mikolajczak and Johann M Cherian

Aug 5 (Reuters) - The S&P 500 and Dow hit intraday record

highs on Wednesday on signs of progress for a peace deal with

Iran, while the Nasdaq was on pace for 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?"

The Dow Jones Industrial Average rose 447.96 points,

or 0.83%, to 54,533.87, the S&P 500 gained 5.53 points,

or 0.07%, to 7,742.05 and the Nasdaq Composite lost

129.56 points, or 0.49%, to 26,455.43.

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 about 12%

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. Musk's

other company, Tesla, slipped 1.3%.

Advanced Micro Devices ( AMD ) forecast quarterly revenue above

estimates, reflecting strong AI demand. However, shares dropped

about 6% as investors look for greater evidence the massive AI

spending will result in faster growth.

A 3.5% gain in Amgen ( AMGN ) helped buoy the Dow, as

second-quarter sales for the drugmaker rose 9%. Rival Eli Lilly ( LLY )

gained 3.9% after raising its full-year revenue forecast

and the S&P 500 healthcare rose about 1% as one of the

best performing sectors on the session.

Also helping to lift the Dow was a 3.4% rise in Disney ( DIS )

shares after beating third-quarter profit expectations.

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 saidin 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.

Declining issues outnumbered advancers by a 1.07-to-1 ratio on

the NYSE and by a 1.29-to-1 ratio on the Nasdaq.

The S&P 500 posted 34 new 52-week highs and three new lows while

the Nasdaq Composite recorded 94 new highs and 59 new lows.