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

Reuters - UK Focus

* 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 (Frankfurt: HX6.F - news) , June 3 (Reuters) - U.S. stocks were little changedon Tuesday, with the Dow and the S&P 500 near Monday's recordclosing levels as traders found few reasons to buy following astring of gains, though a rise in semiconductor companies'shares limited losses.

By late afternoon, half of the 10 primary S&P 500 sectorindexes were down for the day, led by telecom, whichfell 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, indicatingthat the rally has lacked conviction.

The Dow Jones industrial average fell 18.41 points or0.11 percent, to 16,725.22, the S&P 500 lost 1.05 pointsor 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 (NasdaqGS: GOOG - news) shares fell 1.6 percent to $545.04 andweighed on the Nasdaq.

The CBOE Volatility Index rose for a second straightday, up 2.4 percent, though it remains under 12, well below thehistorical average of 20. While the current level of the VIXindicates a lack of fear in the market, some investors areconcerned that it also 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 5.4 percentto $45.41. Broadcom Corp (NasdaqGS: BRCM - news) also gave a boost tochipmakers, up 3 percent at $35.86.

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 0.9 percent to $35.16. Ford's stockwas up 0.7 percent to $16.55.

Hillshire Brands (Frankfurt: LEE1.F - news) shares rose 9.3 percent to $58.56after poultry producer Pilgrim's Pride Corp increasedits offer to buy Hillshire, known for its Jimmy Dean sausages,and topped an offer from poultry rival Tyson Foods Inc (NYSE: TSN - news) .Hillshire said it would talk with both parties.

Pilgrim's stock fell 1.7 percent to $25.47. Tyson (Taiwan OTC: 4134.TWO - news) dropped2.1 percent to $42.51.

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

View Comments (0)