* Best Buy, Campbell Soup shares plunge after cautious
* Fed Chairman Ben Bernanke set to speak at 7 p.m. EST
* Dow down 0.1 pct, S&P 500 off 0.2 pct, Nasdaq down 0.4 pct
By Angela Moon
NEW YORK, Nov 19 U.S. stocks fell on Tuesday,
with the Dow and the S&P 500 retreating further from milestone
levels, led by a slide in Best Buy after a disappointing
Trading remained in a tight range with U.S. Federal Reserve
Chairman Ben Bernanke scheduled to speak in Washington at 7 p.m.
EST. Charles Evans, the president of the Chicago Federal Reserve
Bank, said earlier on Tuesday that the central bank may need to
wait until next year, possibly until March, before beginning to
wind down its massive bond-purchase program.
Cautious forecasts from Best Buy and Campbell Soup
Co gave investors a reason to sell some stocks. Best Buy
shares slid 11 percent to close at $38.78, while Campbell Soup
fell 6.2 percent to $39.21.
The Dow briefly rose above 16,000 but failed to close above
that level for the second day. The S&P 500 retreated further
from the 1,800 level it hit on Monday. Despite the two-day
decline, the S&P 500 is still up about 25 percent for the year.
The benchmark index is on track for its biggest yearly gain
"The last couple of days have been a bit choppy, signaling a
top here, but the market is extremely resilient to any bad news
and funds continue to flow into stocks and risky assets from
bonds and fixed income," said Tim Ghriskey, who helps manage
more than $1.5 billion as chief investment officer of Solaris
Asset Management LLC.
The Dow Jones industrial average slipped 8.99 points,
or 0.06 percent, to end at 15,967.03. The Standard & Poor's 500
Index declined 3.66 points, or 0.20 percent, to finish
at 1,787.87. The Nasdaq Composite Index dropped 17.51
points, or 0.44 percent, to close at 3,931.55.
Best Buy is cutting prices for the holiday season to thwart
fierce competition from Wal-Mart and other discount and online
rivals, a move that it warns will hurt margins for the current
Campbell Soup, the world's largest soup maker, also cut its
full-year profit forecast after a drop in demand for its soups
and drinks resulted in first-quarter earnings that fell far
short of analysts' estimates.
But a recovery in the U.S. housing market helped Home Depot
exceed profit and sales estimates for the third quarter,
prompting the No. 1 home improvement chain to raise its
fiscal-year outlook for the third time this year.
The stock gained 0.9 percent to end at $80.38 after hitting
a lifetime high of $82.25.
The S&P 500 has more stocks up so far this year than in
almost any other year since 1980, according to Frost Investment
"221 stocks in the index are up more than 30 percent. In
fact, it has been over 530 trading days now since the stock
market has seen the 10 percent correction that many predicted
over the last 529 or so days," Frost Investment said in a note
On Wednesday, minutes from the Fed's October meeting are
scheduled to be released. At that meeting, the Fed decided to
stick with its bond-buying program. Investors have been bracing
for a pullback from the stimulus program since the summer.
"I'd say there's a very low probability the Fed does
anything between now and the end of the year," said Dan Veru,
chief investment officer of Palisade Capital Management, which
has $4.5 billion in assets and is based in Fort Lee, New Jersey.
Tesla Motors shares rose 3.7 percent to $126.09 in
a volatile session. U.S. traffic safety regulators launched an
investigation into the luxury electric sports car maker's Model
S sedan after three car fires in six weeks.
About 5.8 billion shares traded on the New York Stock
Exchange, the Nasdaq and the NYSE MKT, slightly below the
five-day average closing volume of about 6.1 billion, according
to BATS exchange data.
On the New York Stock Exchange, decliners beat advancers by
a ratio of slightly more than 2 to 1. On the Nasdaq, nearly two
stocks fell for every one that rose.