* ISM Services tops expectations, but new orders slip
* Michael Kors climbs after earnings
* GT Advanced jumps on deal with Apple
* Indexes off: Dow 0.56 pct, S&P 0.52 pct, Nasdaq 0.45 pct
By Chuck Mikolajczak
NEW YORK, Nov 5 U.S. stocks fell on Tuesday, as
investors took profit following two days of gains, ahead of data
later in the week they hoped would give a clearer indication of
the strength of the U.S. economy.
The Institute for Supply Management said Tuesday its
services index rose a point to 55.4 in October despite the
impact of the partial government shutdown, above expectations
for a reading of 54.0 versus 54.4 in September, although new
order growth slowed for a second month to 56.8.
The market initially drifted to a session low after the data was
released, but recouped much of that drop later.
Investors will pay close attention to economic reports this
week to gauge the strength of the economy; these include
readings on gross domestic product and payrolls that were
delayed by the government shutdown.
"Ideally you want very slow growth, the market really likes
that and the concern is that the market gets ahead of it," said
Tim Ghriskey, chief investment officer of Solaris Group in
Bedford Hills, New York.
"The market is already pricing in expectations of economic
improvement and there certainly is a fear of some type of
melt-up in the market and the market becoming somewhat of a
bubble, but we are nowhere near that yet."
The Federal Reserve has indicated it will not begin to pare
its monthly bond-buying program of $85 billion in long-term
assets until the economy shows signs of improvement, a theme
supported by three central bankers on Monday.
The Fed's stimulus has helped buoy the economy and the
equity market for much of the year. The S&P 500 has
gained 23.3 percent so far in 2013, and the Dow is up
The Dow Jones industrial average fell 87.34 points or
0.56 percent, to 15,551.78, the S&P 500 lost 9.17 points,
or 0.52 percent, to 1,758.76 and the Nasdaq Composite
dropped 17.753 points, or 0.45 percent, to 3,918.838.
Michael Kors Holdings Ltd gained 5 percent to
$78.50 after the luxury apparel retailer reported a
better-than-expected 40 percent jump in quarterly revenue.
GT Advanced Technologies jumped 21.4 percent to
$10.17 after the company said Apple Inc will open a
manufacturing facility in Arizona in partnership with the
mineral crystal specialist to make sapphire materials for
Apple's electronic devices.
CVS Caremark Corp advanced 2.4 percent to $63.47
after the drugstore operator and pharmacy benefits manager
posted a higher-than-expected quarterly profit and raised its
forecast for the year.
Mosaic Co lost 1.3 percent to $46.14 after the
fertilizer company reported sharply lower third-quarter
Tenet Healthcare Corp was the worst performer on the
S&P 500, down 9.6 percent to $43.62 after its third-quarter net
income slid from a year earlier.
According to Thomson Reuters data, of 404 companies in the
S&P 500 that have reported results through Tuesday morning, 69.6
percent have topped Wall Street's expectations, above the
long-term average of 63 percent. However, just 53.3 percent have
topped revenue forecasts, below the 61 percent average since