US STOCKS-Wall Street takes a breather after trade-fuelled rally

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* Healthcare sector weighs on S&P 500
* Tapestry slides after profit forecast disappoints
* Boeing top boost to Dow
* Xerox rises on stake sale in Fuji Xerox
* Data shows upbeat business activity in October
* Dow up 0.08%, S&P down 0.12%, Nasdaq off 0.04%

(Adds details on markets, companies, context)
By Arjun Panchadar
Nov 5 (Reuters) - U.S. stocks took a breather on Tuesday,
weighed down partially by losses in healthcare stocks, after a
rally driven by hopes of a trade truce between Washington and
Beijing propelled the three main indexes to record highs a day
earlier.
The benchmark S&P 500 and Nasdaq indexes have risen in seven
of the past 10 sessions. The healthcare sector .SPXHC shed
0.71% while technology stocks .SPLRCT slipped 0.3% after two
days of gains.
China is pushing President Donald Trump to remove more
tariffs as part of the "phase one" deal, which may be signed
this month, according to the latest reports. The Institute for Supply Management services report on
Tuesday on non-manufacturing activity showed a reading of 54.7
in October from 52.6 in September, and above expectations of
53.4, according to economists polled by Reuters, allaying
concerns of a slowdown in the domestic economy.
Wall Street's rally this month has been bolstered by hopes
of a resolution to the trade war, along with a largely
better-than-expected third-quarter earnings season and an upbeat
October jobs report.
Six of the 11 major S&P 500 sectors were lower, with real
estate .SPLRCR leading declines. The energy sector .SPNY
climbed 0.5%, as oil prices rose.
"The main focus is to get this phase one trade deal, which
could happen this month," said Randy Frederick, vice president
of trading and derivatives for Charles Schwab in Austin, Texas.
"I do think the market can hold its ground until we get some
sort of a deal signed."
The S&P 500 and the Nasdaq closed at record highs for the
second consecutive session on Monday, while the Dow Jones hit a
record high for the first time since July.
Over three-quarters of the S&P 500 companies that have
reported results so far have beaten profit expectations,
Refinitiv data showed.
"The lion's share of the numbers have come in already and we
have had enough reports to suggest that this was a solid
earnings season," Frederick said.
At 10:31 a.m. ET the Dow Jones Industrial Average .DJI was
up 23.02 points, or 0.08%, at 27,485.13, the S&P 500 .SPX was
down 3.67 points, or 0.12%, at 3,074.60 and the Nasdaq Composite
.IXIC was down 3.15 points, or 0.04%, at 8,430.06.
A 2% rise in Boeing Co's BA.N shares kept the Dow Jones
index in positive territory after Chairman Dave Calhoun said
Boeing's board believed Chief Executive Officer Dennis
Muilenburg "has done everything right" in the midst of two fatal
crashes involving the company's 737 MAX jet. Shares of Tapestry Inc TPR.N reversed course to fall 4.45%
after the Coach handbag maker forecast second-quarter profit
below expectations. Adobe Inc ADBE.O rose 3% as the Photoshop software maker
raised its fourth-quarter digital media annualized recurring
revenue target, boosting the Nasdaq and S&P 500. Xerox Holdings Corp XRX.N gained 5% after the photocopier
maker said it would sell its 25% stake in Fuji Xerox, its joint
venture with Fujifilm Holdings 4901.T , for $2.3 billion.
Uber Technologies Inc UBER.N fell 7% after the
ride-hailing service posted a bigger third-quarter loss as it
tried to outspend competitors through discounts. Advancing issues outnumbered decliners by a 1.06-to-1 ratio
on the NYSE and a 1.22-to-1 ratio on the Nasdaq.
The S&P index recorded 56 new 52-week highs and no new lows,
while the Nasdaq recorded 122 new highs and 24 new lows.