*

Indexes: Dow down 0.14%, S&P 500 down 0.03%, Nasdaq up

0.18%

*

Caterpillar ( CAT ) profit falls on weak equipment demand, tariff

hit

*

Palantir ( PLTR ) jumps as soaring AI demand powers forecast

upgrade

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July's ISM nonmanufacturing PMI slipped to 50.1

(Updates with market open prices)

By Nikhil Sharma and Pranav Kashyap

Aug 5 (Reuters) -

Wall Street's main indexes gave up opening gains on Tuesday

after data showed U.S. services activity stalled, while

investors continued to assess the latest batch of corporate

earnings.

At 10:07 a.m. ET, the Dow Jones Industrial Average

fell 63.46 points, or 0.14%, to 44,110.18, and the S&P 500

lost 1.86 points, or 0.03%, to 6,328.08. The Nasdaq

Composite gained 37.45 points, or 0.18%, to 21,091.04.

U.S. services sector growth

unexpectedly stalled

in July, as new orders barely budged and hiring slipped

further - even as input costs soared at their fastest pace in

nearly three years - highlighting how uncertainty around the

Trump administration's tariff policy continues to weigh on

businesses.

Wall Street had roared back to life on Monday by posting its

best session since May 27 and recouping last week's losses when

disappointing July jobs data and sharp downward revisions to

prior months fueled expectations of a Fed rate cut in September.

As per CME Group's FedWatch tool, odds of a September cut

stands at 90%, up sharply from 63.3% just a week ago - and

market watchers are eyeing at least two quarter-point cuts by

year-end.

Earnings from major names on Tuesday include Advanced Micro

Devices ( AMD ), Snap and Rivian.

Pfizer ( PFE ) gained 3.6% in after raising its annual

profit forecast, while Palantir Technologies ( PLTR ) rose 8.6%

as it boosted itsannual revenue forecast.

Meanwhile, President Donald Trump's decision to fire the

head of the Bureau of Labor Statistics, responsible for past

jobs data, stoked investors' fears about the integrity of

economic data.

Trump on a CNBC interview said he would "shortly" announce

his pick for an open seat on the Federal Reserve's board of

governors and possibly his nominee for Fed chair as well.

"You can announce who the next chair is, but I don't think

that Chair Powell will be going anywhere until the end of his

term. I also don't think that whoever is announced as the new

Fed chair will really be impactful," said Art Hogan, chief

market strategist at B Riley Wealth.

Investors also weighed the impact of U.S. tariffs on global

economies and corporate earnings. Trump signaled that the U.S.

could soon slap a "small tariff" on pharmaceutical imports, with

the potential for steeper rates down the line. He also hinted at

progress toward a trade deal with China, suggesting a possible

meeting with President Xi Jinping by this year's end if talks

succeed.

Beyond last week's jobs data jolt, Wall Street has

stayed buoyant, fueled by blockbuster earnings from the

"Magnificent 7" tech giants, with Nvidia's ( NVDA ) results on

deck in three weeks. Reflecting the market's upbeat mood, HSBC

just boosted

its S&P 500 year-end target by more than 800 points to

6,400, citing AI excitement and easing U.S. policy uncertainty.

Caterpillar ( CAT ) slipped 0.3% after reporting a lower

second-quarter profit, hurt by sluggish demand for construction

equipment and higher costs tied to U.S. tariffs.

KFC ( YUM ) parent Yum Brands ( YUM ) fell 2.8% after missing

estimates for second-quarter comparable sales and profit.

Advancing issues outnumbered decliners by a 1.29-to-1

ratio on the NYSE and by a 1.07-to-1 ratio on the Nasdaq.

The S&P 500 posted 31 new 52-week highs and four new

lows, while the Nasdaq Composite recorded 54 new highs and 40

new lows.