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US STOCKS-Wall St trims earlier losses; S&P flat near record
June 3, 2014 / 7:43 PM / 4 years ago

US STOCKS-Wall St trims earlier losses; S&P flat near record

* Dow, S&P 500 ended at records on Monday

* Semiconductors rally; Skyworks lifts outlook

* Dow off 0.1 pct; S&P 500 flat; Nasdaq off 0.1 pct (Updates to late afternoon)

By Angela Moon

NEW YORK, June 3 (Reuters) - U.S. stocks were little changed on Tuesday, with the Dow and the S&P 500 near Monday’s record closing levels as traders found few reasons to buy following a string of gains, though a rise in semiconductor companies’ shares limited losses.

By late afternoon, half of the 10 primary S&P 500 sector indexes were down for the day, led by telecom, which fell 1 percent.

Monday marked the Dow’s second straight record closing high, while it was the third consecutive record close for the S&P 500. However, recent advances were made on light volume, indicating that the rally has lacked conviction.

The Dow Jones industrial average fell 18.41 points or 0.11 percent, to 16,725.22, the S&P 500 lost 1.05 points or 0.05 percent, to 1,923.92 and the Nasdaq Composite dropped 3.79 points or 0.09 percent, to 4,233.41.

Google Inc shares fell 1.6 percent to $545.04 and weighed on the Nasdaq.

The CBOE Volatility Index rose for a second straight day, up 2.4 percent, though it remains under 12, well below the historical average of 20. While the current level of the VIX indicates a lack of fear in the market, some investors are concerned that it also reflects a sense of complacency.

“We can’t seem to get a decent pullback here as there isn’t any momentum to the downside. Every time the market goes down, it is met with buying,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Semiconductor stocks ranked among the market’s leaders, with the PHLX semiconductor index up 0.9 percent. The sector rallied after Skyworks Solutions Inc raised its earnings and revenue outlook, driving its stock up 5.4 percent to $45.41. Broadcom Corp also gave a boost to chipmakers, up 3 percent at $35.86.

Automakers attracted attention after both General Motors Co and Ford Motor Co reported May sales that topped expectations. GM shares rose 0.9 percent to $35.16. Ford’s stock was up 0.7 percent to $16.55.

Hillshire Brands shares rose 9.3 percent to $58.56 after poultry producer Pilgrim’s Pride Corp increased its offer to buy Hillshire, known for its Jimmy Dean sausages, and topped an offer from poultry rival Tyson Foods Inc. Hillshire said it would talk with both parties.

Pilgrim’s stock fell 1.7 percent to $25.47. Tyson dropped 2.1 percent to $42.51.

In the latest economic data, April factory orders rose 0.7 percent, topping forecasts. (Reporting by Angela Moon; Editing by Nick Zieminski)

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