* Fox rallies, Time Warner falls as Fox withdraws merger bid
* Treasury yields fall, gold ticks higher
* Indexes off: Dow 0.8 pct, S&P 1 pct, Nasdaq 0.7 pct
(Updates to close; adds quotes, after-hours action)
By Akane Otani
NEW YORK, Aug 5 U.S. stocks ended down on
Tuesday, nose-diving in the afternoon as concerns mounted over
escalating tensions in Ukraine.
All 10 S&P 500 sectors ended lower, led by energy stocks,
which lost 2.1 percent.
Markets were weak for most of the session, but selling
accelerated in the afternoon on reports that Russian troops were
massing near the Ukraine border.
"Obviously, the consensus for a long time has been that the
market has been due for a correction, so it was ripe for
sentiment to change very quickly," said Mark Luschini, chief
investment strategist at Janney Montgomery Scott in
The S&P is down 3.4 percent from its record closing high of
1,987.98 points reached on July 24.
The energy index ended 2.1 percent lower, dragged
down by concerns about oversupply of oil and disappointing
results from Pioneer Natural Resources. Pioneer lost 5.6
percent and was the worst-performing S&P energy name.
Normally, tensions in oil-producing regions like Russia
would boost the price of oil, but bigger worries about demand
and poor margins overwhelmed those concerns.
The Dow Jones industrial average fell 139.81 points,
or 0.84 percent, to 16,429.47, the S&P 500 ended down
18.78 points, or 0.97 percent, to 1,920.21, and the Nasdaq
Composite lost 31.05 points, or 0.71 percent, to
Declining issues outnumbered advancing ones on the New York
Stock Exchange by 2,194 to 844, for a 2.60-to-1 ratio on the
downside. On the Nasdaq, 1,556 issues fell and 1,116 advanced
for a 1.39-to-1 ratio.
Shortly after the close, Twenty-First Century Fox,
the media company controlled by Rupert Murdoch, said it had
withdrawn its offer to buy Time Warner Inc. Shares of
Fox jumped, gaining 7.7 percent in after-hours action, while
Time Warner shares fell 11.4 percent.
Walt Disney Co reported better-than-expected
earnings after the bell, but its shares were little changed from
the NYSE closing price of $86.75
Earlier in the day, the market was lifted by data showing
new orders for U.S. factory goods rose more than expected in
June, and that a measure of growth in the services sector
increased at the fastest rate in 8-1/2 years.
Target shares fell 4.4 percent to $58.03 after
discount retailer cut its second-quarter earnings estimate.
Shares of solar and LED equipment maker GT Advanced
Technologies rose 6.7 percent to $15.08 a day after it
raised the lower end of its full-year 2014 adjusted profit
About 6.2 billion shares changed hands on U.S. exchanges on
Tuesday, short of the 6.7 billion average for the last five
days, according to data from BATS Global Markets.
(Reporting by Akane Otani; Additional reporting by Rodrigo
Campos; Editing by Leslie Adler)