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.
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
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
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)