The US markets ended mostly lower on Tuesday. The pullback by the Dow and the S&P 500 was partly due to profit taking after the advance seen last Friday lifted all three major averages to new record closing highs. Negative sentiment have also been generated by a report from the Institute for Supply Management (ISM) showing its reading on service sector activity pulled back off a record high in June. The ISM said its services PMI slid to 60.1 in June from 64.0 in May, although a reading above 50 still indicates growth in the sector. Street had expected the index to edge down to 63.5.
On the sectoral front, Energy stocks showed a substantial move to the downside on the day as the price of crude oil for August delivery tumbled $1.79 to $73.37 a barrel after reaching a six-year intraday high. Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plunged by 5.6 percent and the NYSE Arca Oil Index plummeted by 3.5 percent. Considerable weakness was also visible among steel stocks, as reflected by the 2.9 percent slump by the NYSE Arca Steel Index. Airline, banking and natural gas stocks also saw significant weakness on the day, while retail stocks showed a strong move to the upside.
Dow Jones Industrial Average fell 208.98 points or 0.6 percent to 34,577.37 and S&P 500 was down by 8.8 points or 0.2 percent to 4,343.54, while Nasdaq rose 24.32 points or 0.17 percent to 14,663.64.
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