US STOCKS-Wall St falls back from record highs; small caps drop
* Investors watch struggling small-cap index
* Deere shares fall after results, Macy's up
* Dow down 0.6 pct, S&P 500 down 0.5 pct, Nasdaq down 0.7 pct (Updates to late afternoon trading)
By Caroline Valetkevitch
NEW YORK, May 14 (Reuters) - U.S. stocks slipped on Wednesday, a day after the Dow and S&P 500 hit record closing highs, as small caps sold off and shares of retailers declined.
Leading declines on the Dow and S&P was IBM. Its shares fell 1.7 percent to $188.94 after it said in a filing that it expects hardware profit to be flat year-over-year in 2014.
Macy's dipped 0.5 percent to $57.55 after its sales missed expectations. The S&P retail index was down 1 percent.
Retailer Fossil Group Inc was the biggest percentage decliner on the S&P 500 a day after it gave a second-quarter profit outlook that was much lower than expected, pressured by rising costs. Shares fell 9 percent to $101.45.
The Russell 2000 index of small-cap stocks dropped 1.4 percent, underperforming the three major indexes and extending a divergence that has been pronounced throughout 2014. Some analysts are concerned that persistent weakness in small-caps could spread throughout the market. Continuación...