Stocks slipped on Thursday as data on regional factory activity and jobless claims underscored worries about the pace of the economic recovery.
Shares of manufacturers fell, including 3M , which was down 0.7 percent at $80.29, while the consumer discretionary sector also dragged on the S&P 500. The S&P retail index <.RLX> declined 1.3 percent.
Helping to limit losses on the Nasdaq were shares of Apple Inc , which touched a lifetime high at $272.90. Apple said on Wednesday it sold more than 600,000 units of its new iPhone, a record for a single day of preorders. Its shares were last up 1.6 percent at $271.70.
The day's economic data included a report by the Philadelphia Federal Reserve Bank, which said its June business activity index fell to 8.0 from 21.4 in May, its slowest pace in 10 months.
Another report showed the number of people filing for unemployment insurance unexpectedly increased in the latest week.
This is very consistent with the view that the economy is recovering -- but recovering at a slow or anemic pace, said Hugh Johnson, chief investment officer at Johnson Illington Advisors in Albany, New York.
The Dow Jones industrial average <.DJI> was down 40.59 points, or 0.39 percent, at 10,368.87. The Standard & Poor's 500 Index <.SPX> was down 3.16 points, or 0.28 percent, at 1,111.45. The Nasdaq Composite Index <.IXIC> was down 2.80 points, or 0.12 percent, at 2,303.13.
Homebuilder stocks also lost ground a day after luxury homebuilder Toll Brothers Inc said a decline in consumer confidence has led to fewer people looking to buy a home.
Toll Brothers released intra-quarter activity data on home buying before executives spoke at the Reuters Global Real Estate and Infrastructure Summit on Thursday. Its shares declined 4.2 percent to $17.99 while KB Home fell 2.9 percent to $12.55.
The Morgan Stanley housing index <.HGX> dropped 2.1 percent.
The S&P 500 fell below its 200-day moving average after posting back-to-back closes above the average for the first time in nearly a month.
(Additional reporting by Rodrigo Campos; Editing by Kenneth Barry)