* Cantor's primary loss seen as reason for caution
* Bank of America shares biggest drag on S&P 500
* World Bank cuts global 2014 outlook
* Dow down 0.6 pct; S&P 500 off 0.4 pct; Nasdaq down 0.1 pct
(Updates to close)
By Caroline Valetkevitch
NEW YORK, June 11 U.S. stocks fell on Wednesday,
with the Dow breaking a four-day string of record closing highs,
following the World Bank's reduction of its global growth
The S&P 500's drop of 0.4 percent was its biggest daily
percentage loss since May 20. The benchmark index fell for the
second day in a row, after four straight record closing highs.
The selloff was broad. Every S&P 500 sector index except
energy declined for the day.
Low volume and low volatility have marked recent sessions,
leaving indexes to trade in a narrow range.
The World Bank's lower growth forecast provided investors
with a reason to unload some stocks. Late Tuesday, the World
Bank cut its global economic growth forecast for 2014 to 2.8
percent from 3.2 percent because of a harsh U.S. winter and the
impact of the Ukraine crisis.
"It's pretty quiet. The only news investors are keying in on
is the forecast of slightly lower global growth," said Dan Veru,
chief investment officer of Palisade Capital Management LLC in
Fort Lee, New Jersey, which oversees $4 billion.
"I think it's an excuse for some investors to take some
money off the table."
The biggest drag on the S&P 500 was Bank of America Corp
, down 2.1 percent at $15.59. The bank has reached an
impasse in negotiating a multibillion-dollar settlement with the
U.S. Department of Justice related to the bank's mortgage
investments, according to The New York Times.
Investors turned cautious 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
The Dow Jones industrial average fell 102.04 points
or 0.60 percent, to 16,843.88. The S&P 500 slid 6.90
points or 0.35 percent, to 1,943.89. The Nasdaq Composite
dropped 6.07 points or 0.14 percent, to 4,331.93.
Even as the Dow and the S&P 500 retreated from recent gains,
the PHLX semiconductor index kept up its rally. The SOX
rose 0.5 percent, extending its winning streak to 15 days, its
longest stretch of gains since the index was created about 20
Leading the SOX higher, Micron Technology Inc rose 5
percent to $30.99 a day after Credit Suisse raised its price
target on the memory chipmaker's stock to $50 from $30.
The CBOE Volatility Index rose 5.6 percent to 11.60
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 fell to 9.71, the lowest since February 2013.
Orexigen Therapeutics Inc shares sank 14.7 percent
to $5.81 after the U.S. Food and Drug Administration delayed a
decision on the marketing application for its obesity drug by
Volume was once again below average. With just 5.2 billion
shares changing hands on U.S. exchanges, Wednesday's volume was
below the 5.76 billion average for the last month, according to
data from BATS Global Markets.
(Editing by Bernadette Baum, Nick Zieminski and Jan Paschal)