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CORRECTED - US STOCKS-Wall St edges lower on dollar bounce

Published 05/03/2011, 10:58 AM
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(Corrects to show in 5th paragraph that dollar rise makes commodities more expensive)

* Pfizer falls, MasterCard rises after earnings reports

* Dollar advances, drags commodities

* Indexes off: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.2 pct

* For up-to-the-minute market news see STXNEWS/US

By Chuck Mikolajczak

NEW YORK, May 3 (Reuters) - U.S. stocks dipped on Tuesday as a move higher in the dollar pressured commodity prices and investors weighed the potential for some consolidation in equities after a recent run-up.

The dollar edged off three-year lows as a buildup of bets to sell the currency, based on loose U.S monetary policy, ran out of steam. The dollar index <.DXY>, measured against a basket of major currencies, was last up 0.3 percent. For details, see [ID:nLDE7421B7]

Brent crude fell 1.3 percent to $123.53 a barrel, and U.S. crude futures shed 1.1 percent to $112.31. The S&P energy index <.GSPE> lost 1.2 percent.

Gold slipped Tuesday from record highs above $1,570 an ounce. The NYSEArca gold bugs index <.HUI> dipped 1.7 percent.

A rise in the greenback saps interest in U.S. dollar-priced commodities as they become more expensive.

"Some of the markets were getting a little overdone," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.

"Markets gets overbought, dollar is oversold -- yes. You've got a corrective bounce of the dollar coming, it's not a change in trend by any means."

The Dow Jones industrial average <.DJI> dropped 10.25 points, or 0.08 percent, to 12,797.11. The Standard & Poor's 500 Index <.SPX> slipped 2.79 points, or 0.20 percent, to 1,358.43. The Nasdaq Composite Index <.IXIC> shed 4.93 points, or 0.17 percent, to 2,859.15.

Pfizer Inc fell 2.4 percent to $20.52 after the drugmaker reported lower-than-expected quarterly revenue. [ID:nN03286398]

MasterCard Inc rose 3.4 percent to $284.62 after the world's second-largest credit card processing network posted a 24 percent jump in quarterly profit. [ID:nN02251522]

At 10 a.m. EST [1400 GMT], the Commerce Department releases March factory orders. Economists forecast a 1.9 percent rise, compared with a 0.1 percent drop in February. (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

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