Dow retreats after record

NEW YORK (CNNMoney.com) -- Stocks slipped Thursday morning, as a selloff in global markets gave investors a reason to step back one session after the Dow industrials closed at an all-time high.

The Dow Jones industrial average (down 40.15 to 12,763.69, Charts) lost 0.3 percent in the early going, after ending the previous session above 12,800 for the first time ever, completing the comeback from the big selloff of late February.

The broader S&P 500 (down 7.29 to 1,465.21, Charts) index also lost 0.4 percent, after ending the previous session at a six-and-a-half-year high. The Nasdaq (Charts) composite lost 0.5 percent.

Upbeat earnings from JP Morgan (Charts, Fortune 500) helped boost the Dow on Wednesday, but the rest of the market was mixed.

Any positive momentum failed to carry over to early Thursday, as investors eyed a big selloff in Asian and European markets.

China's economy grew 11.1 percent in the first quarter, sparking talk that authorities would need to raise interest rates to cool down growth - all of which pressured stocks in China and elsewhere in Asia. European markets followed suit.

The global market decline weighed on U.S. stocks early Thursday, giving investors a reason to retreat after the previous day's Dow record.

However, early losses were stemmed by a drop in oil prices and some improved quarterly earnings reports.

eBay (up $0.04 to $34.49, Charts, Fortune 500) reported higher quarterly results that topped forecasts after the close Wednesday. The online auctioneer also said that 2007 results would be at the top of analysts' forecasts. Shares were little changed.

On Thursday, Merck (Charts, Fortune 500) reported higher quarterly sales and earnings that topped estimates and reaffirmed its 2007 earnings forecast.

On Thursday, Dow component Altria (down $0.62 to $69.46, Charts, Fortune 500) reported higher quarterly sales and earnings that were short of forecasts, sending the stock lower.

Thursday morning brings quarterly earnings from Dow components Altria and Merck. Other companies due to report include Bank of America (Charts, Fortune 500), Merrill Lynch (Charts, Fortune 500) and Nokia (Charts).

The March index of leading economic indicators is due shortly. The April Philadelphia Fed index is due this afternoon.

U.S. light crude oil for May delivery fell 93 cents to $62.20 a barrel on the New York Mercantile Exchange.

Treasury prices climbed, lowering the yield on the benchmark 10-year note to 4.64 percent from 4.65 percent late Wednesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar gained versus the euro and fell versus the yen. The greenback also recovered a bit after hitting a 26-year low against the pound on Wednesday.