US stocks slip from records as investors sell safe picks

NEW YORK (AP) - U.S. stocks slid Tuesday as investors continued to sell phone company and utility shares. Energy companies rose with the price of oil, but stocks have been locked in an up-and-down pattern for more than a week.

As the dollar weakened, the price of oil rose for the fourth day in a row to sustain a recent recovery and metals prices also rose. The Labor Department said inflation remains low, as prices paid by consumers were unchanged in July. Most stocks were down, but for the second day in a row, the biggest losses went to traditionally safe investments like telecom and utility companies. Bond prices also inched lower.

The dollar has been very strong over the last few years compared to other currencies. Early this year it looked like the dollar would stay at those elevated levels because the Federal Reserve was raising interest rates while other global central banks were cutting them to stimulate their economies. John Cannally, chief economic strategist for LPL Financial, said the Fed has changed course. By leaving interest rates where they are, it has allowed the currency to weaken a bit, aiding U.S. manufacturing and energy companies and other exporters.

"The Fed is using the dollar as sort of a tool of monetary policy," he said. "The Fed wants to give China and emerging markets time to heal and get their houses in order."

The Dow Jones industrial average lost 84.03 points, or 0.5 percent, to 18,552.02. The Standard & Poor's 500 index slid 12 points, or 0.5 percent, to 2,178.15. The Nasdaq composite fell 34.90 points, or 0.7 percent, to 5,227.11. Stocks have been setting records recently, but it's been more than a week since they rose for two days in a row. The market hasn't made many big moves over the last month.