Wall St. ends a bit lower a day after Dow, S&P set records

NEW YORK, Tue Jun 3, 2014 5:01pm EDT

Traders work on the floor of the New York Stock Exchange June 3, 2014. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange June 3, 2014.

Credit: Reuters/Brendan McDermid

NEW YORK, (Reuters) - U.S. stocks dipped in thin volume on Tuesday, with the Dow and the S&P 500 retreating from Monday's record closing levels as traders found few reasons to buy following a string of gains. A rise in semiconductor companies' shares limited losses.

About half of the 10 primary S&P 500 sector indexes were down for the day, led by telecom .SPLRCL, which fell 1 percent.

Monday marked the Dow's second straight record closing high, while it was the third consecutive record close for the S&P 500. However, recent advances were made on light volume, indicating that the rally has lacked conviction.

On Tuesday, the Dow Jones industrial average .DJI fell 21.29 points or 0.13 percent, to end at 16,722.34. The S&P 500 .SPX inched down just 0.73 of a point or 0.04 percent, to 1,924.24. The Nasdaq Composite .IXIC dropped 3.12 points or 0.07 percent, to 4,234.08.

Google Inc (GOOGL.O) shares fell 1.7 percent to $544.51, weighing on the Nasdaq.

The CBOE Volatility Index .VIX rose for a second straight day, up 2.5 percent, though it remained under 12, well below the historical average of 20. While the level of the VIX indicates a lack of fear in the market, some investors are concerned that it also reflects a sense of complacency.

"We can't seem to get a decent pullback here as there isn't any momentum to the downside. Every time the market goes down, it is met with buying," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Semiconductor stocks ranked among the market's leaders, with the PHLX semiconductor index .SOX up 0.9 percent. The sector rallied after Skyworks Solutions Inc (SWKS.O) raised its earnings and revenue outlook, driving its stock up 6 percent to $45.65. Broadcom Corp (BRCM.O), up 3 percent at $35.88, also gave chipmakers a lift.

Automakers attracted attention after both General Motors Co (GM.N) and Ford Motor Co (F.N) reported May sales that topped expectations. GM shares rose 1.1 percent to $35.26. Ford's stock gained 0.7 percent to $16.55.

Hillshire Brands (HSH.N) shares rose 9.5 percent to $58.65 after poultry producer Pilgrim's Pride Corp (PPC.O) raised its offer to buy Hillshire, known for its Jimmy Dean sausages, and topped an offer from poultry rival Tyson Foods Inc (TSN.N). Hillshire said it would talk with both parties.

Pilgrim's stock fell 2.2 percent to $25.34. Tyson dropped 3 percent to $42.08.

In the latest economic data, April factory orders rose 0.7 percent, topping forecasts.

Trading volume was light at around 5.1 billion shares on U.S. exchanges, below last month's average of 5.75 billion, according to data from BATS Global Markets.

(Reporting by Angela Moon; Editing by Nick Zieminski and Jan Paschal)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
GodsAmour wrote:
This is all a crock and you know it. This market is faked, the metals market is manipulated, the banks are broke and Wall Street is sucking fumes.

Jun 03, 2014 1:58pm EDT  --  Report as abuse
cheeze wrote:
If the fed gets out of this, we will al be eating bread, and drinking water. All smoke and mirrors, the great world economy ruined the great American life style. Big business shelters trillions of dollars in taxes overseas, while our “no shame” law makers watch the great USA flounder and scrimp every nickel to save money. This great country needs to create tangible goods again to bring back prosperity to those who want to work for it. The bought out ” Congress” needs to go and people need to be elected who will resent all classes, not just the rich corporate guy.

Jun 03, 2014 8:24pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.