US STOCKS-S&P 500 retreats slightly after recent record

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* Financials, energy advance; real estate weak
* ISM data shows upbeat business activity in October
* Dow up 0.11%, S&P 500 down 0.12%, Nasdaq up 0.02%

(Updates to market close)
By Chuck Mikolajczak
NEW YORK, Nov 5 (Reuters) - The benchmark S&P 500 edged
lower on Tuesday, as investors paused in the wake of a rally
buoyed by hopes of a trade deal between the United States and
China that sent the three main U.S. stock indexes to record
highs in the previous session.
While there was growing optimism over a deal, investors have
also shown caution, pushing up value stocks over growth names
over the past few sessions. The Russell 1000 value .RLV index
has climbed nearly 2% over the past three sessions compared to a
gain of 0.8% for the Russell 1000 growth .RLG index.
Keeping some tentativeness intact, China is pushing
President Donald Trump to remove more tariffs as part of the
"phase one" deal, which may be signed this month, according to
latest reports. "The market is at an all time high, people are getting a
little skittish about the deal," said Tim Ghriskey, chief
investment strategist at Inverness Counsel in New York.
"Definitely a move to value, but it is more of a move to
financials because rates are moving higher and a move to energy
because the commodity is moving higher and those are two sectors
that have gotten absolutely mauled by the market, the valuations
are cheap there."
Financials .SPSY , a big weight for value stocks, rose
0.42% as benchmark U.S. Treasury yields hit a six-week high and
energy .SPNY , gained 0.45% as oil climbed more than 1% as the
best performing S&P sectors. The rate-sensitive real estate
sector .SPLRCR dropped 1.76%. The Dow Jones Industrial Average .DJI rose 30.52 points,
or 0.11%, to 27,492.63, the S&P 500 .SPX lost 3.65 points, or
0.12%, to 3,074.62 and the Nasdaq Composite .IXIC added 1.48
points, or 0.02%, to 8,434.68.
The S&P 500 and the Nasdaq closed at record highs for a
second session on Monday, while the Dow hit a record high for
the first time since July.
Apart from hopes of a resolution to the trade war, stocks
have received a boost from a largely better-than-expected
third-quarter earnings season, the Federal Reserve's interest
rate cut and upbeat economic data.
Data on Tuesday showed the reading on the ISM services index
improved to 54.7 in October from 52.6 in September, above
expectations of 53.4, according to economists polled by Reuters,
easing concerns that a slowdown in the manufacturing sector was
spreading to other parts of the economy.
Over three quarters of S&P 500 companies that have reported
results so far have beaten profit expectations, Refinitiv data
showed. Earnings for the quarter are now expected to dip 0.8%,
an improvement from the 2.2% decline expected on Oct. 1.
A 2.05% rise in Boeing Co's BA.N shares provided the
biggest boost to the blue-chip Dow Jones index after Chairman
Dave Calhoun said the company's board believed CEO Dennis
Muilenburg "has done everything right" following two fatal
crashes of its 737 MAX jet. Helping the Nasdaq advance was Adobe Inc ADBE.O , which
gained 4.25% as the Photoshop software maker raised its
fourth-quarter digital media annualized recurring revenue target
and gave a strong forecast for fiscal 2020.
Uber Technologies Inc UBER.N fell 9.85% as the
ride-hailing service posted a bigger third-quarter loss from a
year earlier. Declining issues outnumbered advancing ones on the NYSE by a
1.13-to-1 ratio; on Nasdaq, a 1.10-to-1 ratio favored advancers.
The S&P 500 posted 58 new 52-week highs and no new lows; the
Nasdaq Composite recorded 148 new highs and 40 new lows.
Volume on U.S. exchanges was 7.89 billion shares, compared
to the 6.61 billion average for the full session over the last
20 trading days.