Updates on market open

By Pranav Kashyap and Twesha Dikshit

Feb 4 (Reuters) - The S&P 500 struggled for direction, while the Dow edged higher on Wednesday, as strong results from Eli Lilly and Super Micro Computer offered some support to the market grappling with a software and cloud sell-off.

The software and services index .SPLRCIS, home to several leading cloud and software companies, fell for a sixth straight session, down more than 13% over the period, its steepest stretch of losses since March 2020.

The losses reflect persistent concerns about how rapid advances in artificial intelligence could upend long-standing software business models.

CrowdStrike CRWD.O dropped 2.3%, while Intuit INTU.O and Adobe ADBE.O were down over 2% each.

Meanwhile, Nasdaq lagged as Advanced Micro Devices AMD.O slid 12.2%, after the company forecast a slight dip in first-quarter revenue.

The S&P 500's technology index .SPLRCT also ticked lower.

But strong gains in Eli Lilly and Super Micro Computer lent backed the market. Super Micro Computer's SMCI.O shares jumped 16% after the company raised its annual revenue forecast on sustained demand for its AI-optimized servers as companies ramp up data-center capacity.

Shares of the drugmaker LLY.N rose 7% after the company forecast 2026 profit above Wall Street expectations. GE HealthCare also forecast fiscal year profit above estimates, sending its shares up 3.8%.

The S&P 500's healthcare index .SPXHC rose marginally.

"Strong earnings support the market's valuations and what we've seen is that the earnings growth has broadened across more sectors than just technology," said Sean Clark, chief investment officer at Clark Capital.

At 9:42 p.m. ET, the Dow Jones Industrial Average .DJI rose 0.55%, to 49,513.23, the S&P 500 .SPX rose 0.1%, to 6,924.78 and the Nasdaq Composite .IXIC lost 0.14%, to 23,222.

Alphabet GOOGL.O rose 0.8% ahead of its results, due after markets close, while Amazon AMZN.O edged down 0.3% before its earnings report on Thursday.

Markets will scrutinize the results from the "Magnificent Seven" for evidence that massive capital-spending plans are yielding the kind of returns that justify their lofty valuations.

The increasingly crowded AI trade has also pushed investors toward undervalued small caps and other overlooked corners of the market.

The small-cap S&P 600 index .SPCY added 1.2% on the day, while the Russell 2000 was on track for a weekly gain of more than 1%, compared to a modest decline for the S&P 500.

"We have seen a leadership shift from large-cap growth technology companies into other sectors, such as small caps, that have assumed a leadership role. Technology and large-cap growth stocks are taking a little bit of a backseat," Clark added.

Uber UBER.K shares fell 4.1% on a forecast of a first-quarter adjusted profit below estimates.

Chipotle Mexican Grill CMG.O slid 1.3% after the burrito chain said it expects to raise menu prices this year, while projecting margins to remain under pressure as diners pull back on eating out.

SHUTDOWN ENDS, DATA AWAITED

U.S. President Donald Trump on Tuesday signed a spending deal into law, ending a partial government shutdown that had snarled the release of key labor-market data this week.

The government is now expected to announce when the key nonfarm payrolls and JOLTS data will be released. In their absence, markets would have to rely on private data providers.

U.S. private payrolls increased less than expected in January, the ADP's national employment report showed.

S&P Global's composite PMI final figures are due shortly after markets open.

(Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by Shilpi Majumdar and Shinjini Ganguli)

((pranav.kashyap@tr.com; +919886482111;))