Stocks were little changed on Tuesday as a delay in Boeing's first test flight of the 787 Dreamliner was offset by investors' search for bargains following Wall Street's worst day in two months.

Boeing Co , the Dow's biggest drag, said the inaugural flight of its long-delayed 787 Dreamliner will be postponed so it can reinforce a section of the aircraft. Boeing's stock plunged 7.8 percent to $43.25.

Over the last month, the market started to feel comfortable with Boeing's production guidelines, but this news is clearly a disappointment, said Ryan Larson, head of equity trading at Voyageur Asset Management in Chicago.

Investors' bargain hunting lifted financials, the S&P 500's best-performing sector. Shares of JPMorgan Chase rose 2.6 percent to $33.71 after falling 6.1 percent on Monday, while Bank of America gained 2.9 percent to $12.28 a day after sliding 9.7 percent.

The KBW bank index <.BKX> rose 1.3 percent.

On the economic front, sales of used homes rose in May at a pace below consensus, but it was the first time the number rose in two consecutive months since September 2005.

Shares of home builders advanced, with DR Horton , up 1.3 percent at $9.30 and KB Home up 3.2 percent at $14.04, leading the 1.4 percent rise in the Dow Jones home construction index <.DJUSHB>.

The Dow Jones industrial average <.DJI> dropped 6.20 points, or 0.07 percent, to 8,332.81. The Standard & Poor's 500 Index <.SPX> gained 2.27 points, or 0.25 percent, to 895.31. The Nasdaq Composite Index <.IXIC> edged up 1.09 points, or 0.06 percent, to 1,767.28.

The broad S&P 500 stock index dropped back into negative territory for the year on Monday. Although the index is up nearly 32 percent from a 12-and-a-half-year low hit in March, it has eased off a gain of as much as 40 percent.

Early Tuesday afternoon, stocks briefly added to gains after strong results from a $40 billion two-year Treasury auction. The auction was closely watched by investors as a gauge for a possible rise in borrowing costs. U.S. Treasuries added to earlier gains after the auction results.

(Editing by Jan Paschal)

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