US STOCKS-Wall Street treads water after recent rally

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* United Technologies, Raytheon weigh on industrials
* Symantec falls after Morgan Stanley downgrade
* Indexes: Dow down 0.05%, S&P 500 down 0.04%, Nasdaq down
0.01%

(Updates to close)
By Caroline Valetkevitch
NEW YORK, June 11 (Reuters) - U.S. stocks ended near flat
and the Dow snapped a six-day winning streak on Tuesday, as
investors paused following a run of gains and fresh worries
emerged over the U.S. trade war with China.
President Donald Trump said Tuesday he was holding up a
trade deal with China and had no interest in moving ahead,
unless Beijing agrees to four or five "major points" which he
did not specify. Separately, Trump said he would impose more tariffs on
Chinese imports if there was no progress in talks with Chinese
President Xi Jinping at the Group of 20 summit later this month.
Stocks were mostly higher in early trading amid lingering
optimism over Trump's decision late on Friday to hold off import
tariffs on Mexico. "Trade sentiment is driving everything," said Chris
Zaccarelli, chief investment officer at Independent Advisor
Alliance in Charlotte, North Carolina.
"What we're seeing today is the more pessimistic view on
what might happen by the end of the month. Most selling in the
month of May could be put down to China and Mexico."
Investors also may be reluctant to push stocks higher
without a fresh catalyst for support, some strategists said.
Data showed U.S. producer prices increased solidly for a
second straight month in May, in line with expectations of
economists polled by Reuters, pointing to a steady pickup in
underlying inflation pressures.
Industrials and utilities indexes led the way lower Tuesday,
with the S&P 500 industrial index .SPLRCI falling 0.9%,
weighed down by losses in United Technologies Corp UTX.N and
Raytheon Co RTN.N .
The Dow Jones Industrial Average .DJI fell 14.17 points,
or 0.05%, to 26,048.51, the S&P 500 .SPX lost 1.01 points, or
0.03%, to 2,885.72 and the Nasdaq Composite .IXIC dropped 0.60
points, or 0.01%, to 7,822.57.
Recent optimism over trade tensions and the prospect of an
interest rate cut by the Federal Reserve had helped stocks rally
in recent sessions. The benchmark S&P 500 .SPX is just 2% away
from its early May all-time high.
The market is betting the Fed will cut interest rates in
July and cut two more times this year as Trump's hard bargaining
on trade with Beijing and others could push the economy back
into recession.
United Technologies fell 4% and Raytheon shed 5.1%, a day
after Trump gave mixed signals on whether he believed the $121
billion merger between the companies should go forward.
On Monday, Raytheon edged higher while United
Technologies lost 3.1%.
The S&P utilities index .SPLRCU on Tuesday was down 0.7%.
Symantec Corp SYMC.O fell after Morgan Stanley downgraded
the antivirus software maker's stock, citing increased
competition.
Advancing issues outnumbered declining ones on the NYSE by a
1.08-to-1 ratio; on Nasdaq, a 1.19-to-1 ratio favored decliners.
The S&P 500 posted 53 new 52-week highs and three new lows;
the Nasdaq Composite recorded 54 new highs and 88 new lows.
Volume on U.S. exchanges was 6.76 billion shares, compared
to about 6.92 billion average for the full session over the last
20 trading days.