Dow dips post-record

NEW YORK (CNNMoney.com) -- Stocks slipped modestly Thursday morning, as investors weighed a selloff in global markets, falling oil prices and some upbeat earnings one session after the Dow industrials closed at an all-time high.

The Dow Jones industrial average (down 24.14 to 12,779.70, Charts) lost 0.2 percent more than an hour into the session, 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 3.31 to 1,469.19, Charts) index also lost 0.2 percent, after ending the previous session at a six-and-a-half-year high. The Nasdaq (Charts) composite lost 0.3 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.

However, the Thursday selloff was "fairly muted" compared to how the market reacted to a similar situation in late February, said Matt King, portfolio manager at Bell Investment Advisors. On Feb. 27, plunging Chinese markets sent stocks around the globe lower on worries about growth. On that day, the Dow slumped 416 points, its biggest one-day point loss in 5-1/2 years.

Although it's still early in the session, stocks so far don't seem to be on track to suffer the same kind of declines Thursday.

"I think that it shows also that investors have come to realize since Feb. 27th that although global markets are connected in general, what happens to the Chinese market doesn't have to have a big influence on the U.S. market," King added.

China's economy grew 11.1 percent in the first quarter, while a key measure of inflation jumped more than expected, 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 (down $0.02 to $34.43, 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, sending shares a bit higher.

Also on Thursday, Schering-Plough (up $2.23 to $30.78, Charts, Fortune 500) reported a jump in quarterly earnings that topped estimates, thanks to strength in its prescription drugs. Shares jumped nearly 8 percent.

On Thursday, Dow component Altria (down $1.29 to $68.79, Charts, Fortune 500) reported higher quarterly sales and earnings that were short of forecasts, sending the stock lower.

Bank of America (down $0.80 to $51.02, Charts, Fortune 500) reported higher quarterly earnings Thursday that topped estimates on higher revenue that missed forecasts. Shares slipped modestly.

Market breadth was negative. On the New York Stock Exchange, losers beat winners by more than 2 to 1 on volume of 440 million shares. On the Nasdaq, decliners topped advancers 2 to 1 as 640 million shares changed hands.

The March index of leading economic indicators rose 0.1 percent as expected, after falling a revised 0.6 percent in the previous month.

The April Philadelphia Fed index is due this afternoon.

U.S. light crude oil for May delivery fell $1.03 to $62.10 a barrel on the New York Mercantile Exchange.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 4.66 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.