High-flying tech companies Netflix and Tesla Motors have stumbled, pulling the Nasdaq 0.6 per cent lower in a muted day for US equities.

The tech-rich Nasdaq dropped 26.73 points (0.57 per cent) to 4,675.71 on Wednesday.

The Dow Jones Industrial Average slipped 2.09 (0.01 per cent) to 17,685.73, while the broad-based S&P 500 lost 3.08 (0.15 per cent) at 2,048.72.

Tesla shares fell 3.9 per cent after Morgan Stanley trimmed its profit forecast for the electric-car manufacturer, while Netflix dropped 4.7 per cent after it pulled the plug on a Bill Cosby program due to allegations of rape and sexual abuse against the comedian.

Analysts said hot Nasdaq stocks were also affected by profit-taking after big gains in recent weeks.

Retail stocks supported the market on buoyant earnings reports.

Department store chain Target gained 7.4 per cent after it reported third-quarter earnings per share of 54 cents, well above analyst forecasts for 47 US cents.

Lowe’s, a home-improvement chain, gained 6.4 per cent on a 17.3 per cent jump in third-quarter net income to $US585 million ($A632.95 million).

The company forecast 2014 sales gains of 4.5-5.0 per cent.

Office supplies giant Staples jumped 9.1 per cent as third-quarter earnings of 37 US cents per share bested analyst expectations by a penny.

Family Dollar dipped 0.5 per cent as it delayed its shareholder vote on a merger with rival discount retailer Dollar Tree until December 23 as it seeks approval from US antitrust regulators.

Dollar Tree gained 1.0 per cent.

Dollar General, which has offered to buy Family Dollar in a competing deal, said it was making “good progress” with US antitrust officials on its proposed transaction. It fell 0.1 per cent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.35 per cent from 2.32 per cent on Tuesday, while the 30-year advanced to 3.07 per cent from 3.04 per cent. Bond prices and yields move inversely.