Stocks decline as energy gains are offset by utilities slump

The stock market remains stuck in a rut.

On Tuesday, stocks ended the day 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.

Stocks have been treading water for a month now 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.”

The Standard & Poor’s 500 index fell 2.13, or 0.10 percent, to 2,109.60. The index has gained 0.1 percent in the past month.

The Dow Jones industrial average fell 28.43, or 0.16 percent, to 18,011.94.

The Nasdaq composite fell 6.40, or 0.13 percent, to 5,076.52.

Utilities led the 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 last 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.

Investors were also following developments with Greece a day after an emergency meeting of the nation’s international creditors.

Greece has submitted a proposal that it hopes will secure a deal to get more funds from its lenders. Prime Minister Alexis Tsipras said it is now up to Europe’s leaders to accept a deal or risk potentially disastrous consequences for the region. For four months, Greece and its creditors have been locked in a standoff over what reforms the country needs to make to get more loans.

This story was originally published June 2, 2015 at 4:07 PM with the headline "Stocks decline as energy gains are offset by utilities slump."