* S&P energy sector index off 0.7 pct after oil prices fall
* Kate Spade shares plunge 25.4 pct in busiest trading day
* Dow off 0.1 pct; S&P 500 down 0.2 pct; Nasdaq off 0.3 pct
(Updates to close)
By Akane Otani
NEW YORK, Aug 12 U.S. stocks ended lower on
Tuesday, snapping a two-day rally as energy shares tumbled on
sliding oil prices. The pullback occurred on light volume
typical of mid-August.
Traders rushed to sell the stock of handbag and accessory
maker and retailer Kate Spade & Co, which plummeted
25.4 percent to close at $29.00 in its busiest day of trading
ever with 52 million shares changing hands. Kate Spade & Co
reported better-than-expected sales, which had helped lift the
stock to a seven-year-high at $42.87 in early trading. The stock
reversed course, though, after the company warned that gross
margins would be weaker than expected for the year.
The S&P 500 energy sector index ended down 0.7
percent in sync with the drop in oil prices. Southwestern Energy
Co shares fell 2.8 percent to $38.21, while Consol
Energy Inc shares ended down 2.4 percent at $39.49. The
two stocks were the biggest losers in the S&P energy index.
Brent crude fell to a 13-month low due to worries
about oversupply, even with possible disruptions to Iraq's
production at the forefront. U.S. September crude also
Forest Oil Corp and Comstock Resources Inc
were the S&P 500's two biggest percentage losers, with Forest
Oil's shares down 8.5 percent at $1.83 and Comstock Resources
shares down 5 percent at $23.56.
Sixteen of the 30 Dow components also fell, including
Chevron Corp, down 0.5 percent at $127.09.
The Dow Jones industrial average fell 9.44 points, or
0.06 percent, to close at 16,560.54. The S&P 500 ended
down 3.17 points, or 0.16 percent, at 1,933.75. The Nasdaq
Composite lost 12.08 points, or 0.27 percent, to finish
About 4.3 billion shares traded on all U.S. platforms,
according to BATS exchange data, compared with the five-day
average of 6.0 billion.
Investors kept an eye on Russia, which sent a convoy of 280
trucks carrying humanitarian aid to eastern Ukraine on Tuesday.
Western officials had been wary of the gesture, fearing Russia
would use a humanitarian mission as a cover for invading
Ukraine. The Russian Foreign Ministry said it would hand off the
convoy to the Red Cross after crossing the border.
"This is another lull in the market. With earnings season
basically done and people on vacation, any little bit of news
will move the market," said Malcolm Polley, president and chief
investment officer of Stewart Capital Advisors in Indiana,
"We already know the Middle East is unstable and that Russia
is sending an aid convoy to Ukraine, so this is all the
continuation of a longer-term issue that has been boiling for a
In Iraq, the United States ruled out sending combat forces
but said it would consider "additional political, economic and
security options" to help its new prime minister-designate make
the transition into office.
The U.S.-listed shares of Canadian biotech company Tekmira
Pharmaceuticals Corp, which is developing a treatment
for the often fatal Ebola virus disease, slid 21.8 percent to
$18.61. The stock's decline on heavy volume followed a recent
rally. The World Health Organization said it backed the use of
experimental Ebola drugs to treat the outbreak in West Africa.
(Editing by Nick Zieminski and Jan Paschal)