* Market sells off in afternoon after Ukraine-related
* Treasury yields fall, gold ticks higher
* Indexes off: Dow 1.0 pct, S&P 1.1 pct, Nasdaq 0.9 pct
(Updates prices, comment)
By Rodrigo Campos
NEW YORK, Aug 5 U.S. stocks fell on Tuesday in
broad selling led by energy shares as crude prices fell and as
traders cited concern about possible escalation of military
action in eastern Ukraine.
Selling accelerated in the afternoon after a Bloomberg
report that cited the Polish Foreign Minister and said Russian
units were poised to pressure or invade Ukraine.
"The market was vulnerable to begin with, with a number of
commentators questioning Monday's rebound," said Quincy Krosby,
market strategist at Prudential Financial in Newark, New Jersey.
She cited the concerns over Ukraine, saying "volume is very
light and the market can be skewed in any direction with a
headline crossing the wires."
Spot gold prices turned higher after trading down for
most of the session. Benchmark U.S. Treasury yields
hit session lows.
The market was pressured throughout the session by weak
earnings, including from Target and Cablevision. Figures showing
China's services purchasing managers' index fell to 50.0 in
July, the lowest since data collection began in November 2005,
Energy stocks posted the largest losses on the S&P
500, down 2.5 percent with crude oil prices down as increasing
supply overshadowed political tensions and on pressure from the
Chinese data. The S&P energy index has fallen in seven of the
last eight sessions.
Pioneer Natural Resources ranked among the top S&P
500 decliners with a 5.7 percent slide to $209.79 after the oil
and gas exploration and production company's revenue missed
The Dow Jones industrial average fell 170.6 points or
1.03 percent, to 16,398.68, the S&P 500 lost 21.62 points
or 1.12 percent, to 1,917.37 and the Nasdaq Composite
dropped 41.22 points or 0.94 percent, to 4,342.67.
Retailer Target cut its second-quarter earnings
estimate due to higher promotions and discounts and its shares
fell 4.2 percent to $58.16.
Cablevision fell 7 percent to $18.08 as subscriber
losses doubled in the second quarter from the previous quarter
as it cut down on promotions.
Shares of solar and LED equipment maker GT Advanced
Technologies rose 5.8 percent to $14.95 a day after it
raised the lower end of its full-year 2014 adjusted profit
forecast, citing higher gross margins.
The market had gotten support from data showing new orders
for U.S. factory goods rose more than expected in June as demand
increased across the board, while a measure of growth in the
services sector increased at the fastest rate in 8-1/2 years,
drawing a healthy picture for the world's largest economy.
(Reporting by Rodrigo Campos; additional reporting by Chuck
Mikolajczak; Editing by Bernadette Baum and Nick Zieminski)