Wall Street edges lower, led by industrials and banks
Stocks edged lower on Tuesday as a rebound in commodity prices failed to offset lingering concerns about a slowdown in industrial growth.
Both U.S. crude and Brent futures rose after Goldman Sachs raised its forecast for oil, citing strong fuel demand growth.
The energy sector, which was one of the weakest on Monday due to anxiety about Europe's debt crisis, led the day's gains, while industrials pushed the market down for a second day.
Financial stocks also pressured the market with the KBW bank index <.BKX> down 0.7 percent.
There isn't much for the market to get excited (about) at this point, especially going into summer months and the QE coming to an end soon, said Randy Frederick, director of trading and derivatives at the Schwab Center for Financial Research in Texas, Austin.
The Dow Jones industrial average <.DJI> was down 12.86 points, or 0.10 percent, at 12,368.40. The Standard & Poor's 500 Index <.SPX> was down 1.43 points, or 0.11 percent, at 1,315.94. The Nasdaq Composite Index <.IXIC> was down 10.06 points, or 0.36 percent, at 2,748.84.
On Monday, U.S. stocks closed at their lowest level in a month.
Following much weaker-than-expected New York and Philly Fed manufacturing surveys last week, the Richmond region reported an outright contraction as their index fell -- the first negative reading since September, according to Peter Boockvar, equity Strategist at Miller Tabak + Co in New York.
The Richmond survey is never market moving as it's not widely followed. But it's another piece in the anecdotal puzzle of the moderation seen in manufacturing in May, with the obvious hope that it's just a mid-cycle misstep before the next acceleration, he said.
In an expanding investigation into mortgage operations, New York's attorney general is seeking information from banks, including JPMorgan Chase & Co
U.S.-listed shares of Deutsche Bank fell 1.3 percent to $56.57 while Dow component JPMorgan fell 1.8 percent to
$41.77.
Occidental Petroleum
On the Nasdaq, shares of Russian Internet company Yandex NV
Yandex raised $1.3 billion in its IPO on Monday by selling 52.2 million shares for $25 each. The offering valued the overall company at about $8 billion.
By midday, Yandex shares were up 41.4 percent at $35.35.
The U.S. Treasury is expected to sell 15 percent of its stake in American International Group Inc
Data showed new U.S. single-family home sales rose unexpectedly in April to notch their second straight month of gains, but analysts said home builders still have a bumpy ride ahead.
(Reporting by Angela Moon, Editing by Jan Paschal)
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