* Semiconductors rally; Skyworks lifts outlook
* CBOE VIX ends up but well below historical average
* Dow off 0.1 pct; S&P 500 down 0.04 pct; Nasdaq off 0.1 pct (Updates to close)
By Angela Moon
NEW YORK (Frankfurt: HX6.F - news) , June 3 (Reuters) - U.S. stocks dipped in thinvolume on Tuesday, with the Dow and the S&P 500 retreating fromMonday's record closing levels as traders found few reasons tobuy following a string of gains. A rise in semiconductorcompanies' shares limited losses.
About half of the 10 primary S&P 500 sector indexes weredown for the day, led by telecom, which fell 1percent.
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, indicatingthat the rally has lacked conviction.
On Tuesday, the Dow Jones industrial average fell21.29 points or 0.13 percent, to end at 16,722.34. The S&P 500 inched down just 0.73 of a point or 0.04 percent, to1,924.24. The Nasdaq Composite dropped 3.12 points or0.07 percent, to 4,234.08.
The CBOE Volatility Index rose for a second straightday, up 2.5 percent, though it remained under 12, well below thehistorical average of 20. While the level of the VIX indicates alack of fear in the market, some investors are concerned that italso reflects a sense of complacency.
"We can't seem to get a decent pullback here as there isn'tany momentum to the downside. Every time the market goes down,it is met with buying," said Peter Cardillo, chief marketeconomist at Rockwell Global Capital in New York.
Semiconductor stocks ranked among the market's leaders, withthe PHLX (Shenzhen: 300287.SZ - news) semiconductor index up 0.9 percent. The sectorrallied after Skyworks Solutions Inc (NasdaqGS: SWKS - news) raised itsearnings and revenue outlook, driving its stock up 6 percent to$45.65. Broadcom Corp (NasdaqGS: BRCM - news) , up 3 percent at $35.88, alsogave chipmakers a lift.
Automakers attracted attention after both General Motors Co and Ford Motor Co (NYSE: F - news) reported May sales that toppedexpectations. GM (NYSE: GM - news) shares rose 1.1 percent to $35.26. Ford's stockgained 0.7 percent to $16.55.
Hillshire Brands (Frankfurt: LEE1.F - news) shares rose 9.5 percent to $58.65after poultry producer Pilgrim's Pride Corp raised itsoffer to buy Hillshire, known for its Jimmy Dean sausages, andtopped an offer from poultry rival Tyson Foods Inc (NYSE: TSN - news) .Hillshire said it would talk with both parties.
In the latest economic data, April factory orders rose 0.7percent, topping forecasts.
Trading volume was light at around 5.1 billion shares onU.S. exchanges, below last month's average of 5.75 billion,according to data from BATS Global Markets. (Reporting by Angela Moon; Editing by Nick Zieminski and JanPaschal)
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