US STOCKS-Dow, S&P retreat for second day; Best Buy weighs

Reuters

* Best Buy, Campbell Soup shares plunge after cautiousoutlook

* Fed Chairman Ben Bernanke set to speak at 7 p.m. EST

* Dow down 0.1 pct, S&P 500 off 0.2 pct, Nasdaq down 0.4 pct

By Angela Moon

NEW YORK, Nov 19 (Reuters) - U.S. stocks fell on Tuesday,with the Dow and the S&P 500 retreating further from milestonelevels, led by a slide in Best Buy after a disappointingoutlook.

Trading remained in a tight range with U.S. Federal ReserveChairman Ben Bernanke scheduled to speak in Washington at 7 p.m.EST. Charles Evans, the president of the Chicago Federal ReserveBank, said earlier on Tuesday that the central bank may need towait until next year, possibly until March, before beginning towind down its massive bond-purchase program.

Cautious forecasts from Best Buy and Campbell SoupCo gave investors a reason to sell some stocks. Best Buyshares slid 11 percent to close at $38.78, while Campbell Soup fell 6.2 percent to $39.21.

The Dow briefly rose above 16,000 but failed to close abovethat level for the second day. The S&P 500 retreated furtherfrom the 1,800 level it hit on Monday. Despite the two-daydecline, the S&P 500 is still up about 25 percent for the year.The benchmark index is on track for its biggest yearly gainsince 2003.

"The last couple of days have been a bit choppy, signaling atop here, but the market is extremely resilient to any bad newsand funds continue to flow into stocks and risky assets frombonds and fixed income," said Tim Ghriskey, who helps managemore than $1.5 billion as chief investment officer of SolarisAsset Management LLC.

The Dow Jones industrial average slipped 8.99 points,or 0.06 percent, to end at 15,967.03. The Standard & Poor's 500Index declined 3.66 points, or 0.20 percent, to finishat 1,787.87. The Nasdaq Composite Index dropped 17.51points, or 0.44 percent, to close at 3,931.55.

Best Buy is cutting prices for the holiday season to thwartfierce competition from Wal-Mart and other discount and onlinerivals, a move that it warns will hurt margins for the currentquarter.

Campbell Soup, the world's largest soup maker, also cut itsfull-year profit forecast after a drop in demand for its soupsand drinks resulted in first-quarter earnings that fell farshort of analysts' estimates.

But a recovery in the U.S. housing market helped Home Depot exceed profit and sales estimates for the third quarter,prompting the No. 1 home improvement chain to raise itsfiscal-year outlook for the third time this year.

The stock gained 0.9 percent to end at $80.38 after hittinga lifetime high of $82.25.

The S&P 500 has more stocks up so far this year than inalmost any other year since 1980, according to Frost InvestmentAdvisors.

"221 stocks in the index are up more than 30 percent. Infact, it has been over 530 trading days now since the stockmarket has seen the 10 percent correction that many predictedover the last 529 or so days," Frost Investment said in a noteto clients.

On Wednesday, minutes from the Fed's October meeting arescheduled to be released. At that meeting, the Fed decided tostick with its bond-buying program. Investors have been bracingfor a pullback from the stimulus program since the summer.

"I'd say there's a very low probability the Fed doesanything between now and the end of the year," said Dan Veru,chief investment officer of Palisade Capital Management, whichhas $4.5 billion in assets and is based in Fort Lee, New Jersey.

Tesla Motors shares rose 3.7 percent to $126.09 ina volatile session. U.S. traffic safety regulators launched aninvestigation into the luxury electric sports car maker's ModelS sedan after three car fires in six weeks.

About 5.8 billion shares traded on the New York StockExchange, the Nasdaq and the NYSE MKT, slightly below thefive-day average closing volume of about 6.1 billion, accordingto BATS exchange data.

On the New York Stock Exchange, decliners beat advancers bya ratio of slightly more than 2 to 1. On the Nasdaq, nearly twostocks fell for every one that rose.

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