* Cantor's primary loss seen as cautious signal
* Micron, Amazon rise after analysts' comments
* World Bank cuts global 2014 outlook
* Dow down 0.5 pct; S&P 500 down 0.3 pct; Nasdaq off 0.1 pct
(Updates to midday)
By Ryan Vlastelica
NEW YORK, June 11 U.S. stocks slipped on
Wednesday, with the Dow and S&P 500 pulling back from record
levels, though strength in a number of large-cap tech names kept
the Nasdaq near breakeven territory.
Wall Street has advanced but struggled for direction lately,
with daily modest moves in either direction. The S&P 500's drop
of 0.3 percent so far on Wednesday represented its biggest daily
decline since May 20.
The stock market's upward trend is still deemed intact, but
a lack of major trading catalysts could curb gains. The Dow
ended at a fourth straight record high on Tuesday, while the S&P
500 closed lower after four days of record finishes.
Investors expressed caution after the surprising primary
election defeat of Eric Cantor, the No. 2 Republican in the
House of Representatives, by an upstart candidate from the Tea
"This seems like it could increase Congress' tendency
towards gridlock at a time when the country's problems are
progressing, which is giving us an excuse to pullback," said
Bruce McCain, chief investment strategist at Key Private Bank in
"The defeat is part of the selloff, but we've also had a
fair run that has taken us to new highs at a time when the
fundamental picture is improving but still murky."
The CBOE Volatility Index rose 2.4 percent to 11.25
on Wednesday but remained well below its historical average of
20. In a sign of the market's low volatility, the 14-day Average
True Range on the S&P 500 hit 10.09, the lowest since February
The Dow Jones industrial average fell 88.55 points or
0.52 percent, to 16,857.37. The S&P 500 slipped 5.62
points or 0.29 percent, to 1,945.17. The Nasdaq Composite
dropped 2.90 points or 0.07 percent, to 4,335.10
The Nasdaq got a boost from Micron Technology, which
rose 5.5 percent to $31.14 a day after Credit Suisse raised its
price target on the stock to $50 from $30. Amazon.com Inc
, up 1.4 percent at $337, also buoyed the Nasdaq.
Amazon's gain came after Goldman Sachs reportedly added the
e-commerce company's stock to its "conviction buy" list.
H&R Block Inc climbed 3.5 percent to $31.81 after
reporting fourth-quarter results.
Orexigen Therapeutics Inc shares plunged 16.8
percent to $5.67 after the U.S. Food and Drug Administration
delayed a decision on the marketing application for its obesity
drug by three months.
Bank of America Corp has reached an impasse in
negotiating a multibillion-dollar settlement with the U.S.
Department of Justice relating to the bank's mortgage
investments, according to The New York Times. The bank's stock
dropped 1.7 percent to $15.65.
The World Bank cut its global economic growth forecast for
2014 to 2.8 percent from 3.2 percent late on Tuesday because of
the impact of the Ukraine crisis and a harsh U.S. winter.
However, with those issues largely in the rear-view mirror, the
World Bank was confident that economic activity was shifting to
a stronger footing.
(Editing by Bernadette Baum, Nick Zieminski and Jan Paschal)