* VIX hits lowest level since 2006 as risk sentiment rises
* S&P, Nasdaq hit record highs for second day in a row
* Wayfair revenue beat lifts shares to record highs
* Dow down 0.01 pct, S&P up 0.03 pct, Nasdaq up 0.39 pct
(Updates to early afternoon)
By Yashaswini Swamynathan
May 9 The S&P 500 and the Nasdaq trimmed gains
after touching record highs for the second straight day on
Tuesday as a rise in technology shares were offset by a fall in
Investors are taking on more risks after a strong showing by
Corporate America in the latest earnings season and Emmanuel
Macron's victory in the French presidential election on Sunday.
The VIX, Wall Street's "fear gauge", hit its lowest
level in more than a decade earlier in the day. A lower VIX
typically indicates a bullish outlook for stocks.
However, analysts cautioned against investor complacency,
especially after the market's strong run since Donald Trump's
election as U.S. president.
"In the short-term, investors can enjoy this run, but they
should start to hedge their positions and look for safety," said
Christian Magoon, chief executive at Amplify ETFs in Chicago,
"Given world events, common sense would say there should be
at least average volatility in daily price movement on the S&P
500. The index seems to be very lethargic."
The index has not moved more than 0.4 percent in either
direction in the past 11 trading days.
At 12:28 p.m. ET (1628 GMT), the Dow Jones Industrial
Average was down 1.33 points, or 0.01 percent, at
21,010.95, the S&P 500 was up 0.85 points, or 0.03
percent, at 2,400.23 and the Nasdaq Composite was up
23.68 points, or 0.39 percent, at 6,126.34.
Five of the 11 major S&P sectors were higher, led by
technology, while the typically defensive plays such
as utilities and telecom services fell.
Energy dropped 0.85 percent on the back of falling
Shares of Valeant Pharmaceuticals jumped more than
21 percent after the company posted its first profit in six
Endo International, Office Depot and
Marriott also rose after reporting better-than-expected
Wayfair surged to an all-time high of $62.65 after the
online furniture retailer revenue beat analysts' expectations.
Declining issues outnumbered advancers on the NYSE by 1,534
to 1,301. On the Nasdaq, 1,501 issues rose and 1,233 fell.
The S&P 500 index showed 38 new 52-week highs and three new
lows, while the Nasdaq recorded 96 new highs and 42 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by