NEW YORK -- U.S. stocks ended Tuesday with a slight loss as gains for the energy sector were offset by a slump in utilities.
Treasury notes fell for a second day after a report showed that consumer prices rose in Europe for the first time since November, a sign that global inflation is picking up from a low base.
The Standard & Poor's 500 index fell 2.13 points, or 0.1 percent, to 2,109.60. The index has gained 0.1 percent in the past month.
The Dow Jones industrial average dropped 28.43 points, or 0.2 percent, to 18,011.94. The Nasdaq composite fell 6.40 points, or 0.1 percent, to 5,076.52.
Stocks have been treading water for a month as a series of modest gains and losses have canceled each other out. The market remains close to record levels after a six-year bull run, but investors appear reluctant to push prices without first seeing evidence that the economy is recovering from its winter slump.
"It's still a decent market," said Jerry Braakman, chief investment officer of First American Trust. "We're up for the year, but it's not flying off the roof like it has been for the last five or six years."
Utilities led declines for stocks as bond yields climbed for a second day.
Investors bought dividend-rich utility stocks last year as bond yields plunged, but that trend has reversed as bond yields have edged higher in the past four months. The sector has dropped 7.6 percent this year, making it the worst performer among the 10 industry groups that make up the S&P 500.
The slump in that sector was offset by a gain in energy stocks, which benefited from higher oil prices.
Oil closed at its highest level since December as the dollar fell against the euro. Oil is priced in dollars, and a drop in the value of the U.S. currency pushes up the price that producers demand for oil.
Despite the recent lack of momentum for stocks, the trend still points to higher prices, said Karyn Cavanaugh, a senior vice president at Voya Investment Management. She believes that stocks will resume their ascent as the economy strengthens and company earnings keep rising.
"The tendency is up, but it's not always a straight line," Cavanaugh said.
In bond trading, prices fell, pushing yields higher. The yield on the 10-year Treasury note climbed to 2.26 percent from 2.18 percent Monday. European government bond yields also rose broadly. The yield on the 10-year German government bond rose to 0.72 percent from 0.55 percent, a large move.
In metals trading, gold was little changed at $1,194.40 an ounce. The price of silver rose 12 cents to $16.80 an ounce. Copper climbed 1.6 cents to $2.74 per pound.
The price of oil rose nearly 2 percent to its highest level since December on a sharp rise in the euro against the dollar. Benchmark U.S. crude rose $1.06 to close at $61.26 a barrel in New York. Brent crude, a benchmark for international oil used by many U.S. refineries, rose 61 cents to close at $65.49 a barrel in London.
Business on 06/03/2015