* Dow, S&P 500 come off fourth month of gains
* Google shares fall, weighing on tech sector
* Broadcom rallies, may sell cellular baseband business
* Indexes down: Dow 0.1 pct, S&P 0.3 pct, Nasdaq 0.6 pct
(Updates to open, adds economic data and analyst comment)
By Ryan Vlastelica
NEW YORK, June 2 U.S. stocks edged lower on
Monday, falling from record levels as a weaker-than-expected
read on manufacturing gave traders an excuse to sell.
The losses were slight but broad, with all ten of the S&P
500's primary sectors lower on the day, led by tech shares,
which fell 0.5 percent.
Equities have been strong lately, with the Dow and S&P
ending a fourth straight monthly rise in May and the Nasdaq up
for its third straight week last week. However, recent trading
has been marked by anemic volume, suggesting the rise has lacked
Wall Street opened with slight gains but turned lower after
data showed that the pace of manufacturing growth had
unexpectedly slowed in May. A separate read on construction
spending showed less growth than expected in April.
"It is disconcerting that stocks have been doing so well
while they have such low volume and data isn't showing the kind
of growth we want," said Brian Battle, director of trading at
Performance Trust Capital Partners in Chicago. "While there
aren't other places for investors to go that look attractive,
stocks seem high at these levels."
Investors continue to watch the yield of the U.S. Treasury
10-year note, which remains near an 11-month low.
Low yields could help boost dividend-paying stocks, including in
the telecom and utility sectors.
The CBOE Volatility index popped 6.5 percent but
continues to hover around lows not seen since March 2013. That
the so-called "fear index" is so low has many, including
officials at the Federal Reserve, concerned the market is
Google Inc pressured tech shares, falling 2.5
percent to $557.83. A censorship watchdog said the company's
services were being disrupted in China ahead of this week's 25th
anniversary of the 1989 crackdown on pro-democracy demonstrators
around Beijing's Tiananmen Square.
The Dow Jones industrial average fell 20.19 points,
or 0.12 percent, to 16,696.98, the S&P 500 lost 5.17
points, or 0.27 percent, to 1,918.4 and the Nasdaq Composite
dropped 24.38 points, or 0.57 percent, to 4,218.24.
Broadcom Corp was the S&P 500's biggest percentage
gainer and the most active stock on the Nasdaq, jumping 8.5
percent to $34.56 after it said it was looking to sell or wind
down its cellular baseband business.
Ariad Pharmaceuticals Inc rose 5.9 percent to $6.83
in heavy volume a day after saying its drug ponatinib showed
anti-tumor activity in patients with advanced gastrointestinal
Protective Life Corp rose 12 percent to $58.48
following news that Japanese insurer Dai-ichi Life Co
was in advanced talks to buy the company.
Apple Inc will be in focus going into the company's
annual Worldwide Developers' Conference, though the tech titan
is not expected to announce any new product categories. The
stock dipped 0.6 percent to $629.32.
(Editing by Bernadette Baum)