US STOCKS-Wall St drops as cyclicals and small-cap shares weigh
* Focus turns to earnings season
* Defensive sectors outperform for the day
* VIX pops but still at low levels
* Dow off 0.3 pct; S&P 500 down 0.4 pct; Nasdaq off 0.6 pct (Updates to midday)
By Ryan Vlastelica
NEW YORK, July 7 (Reuters) - U.S. stocks fell on Monday, pulling back from record levels as investors held off from making big plays before the start of earnings season.
Cyclical stocks, which are tied to the pace of economic growth, were among the weakest of the day, with the S&P industrial sector index down 0.5 percent. The only sectors in positive territory were defensive groups like utilities and telecom.
Small-cap stocks also underperformed for the day, with the S&P Small-Cap 600 index down 1.2 percent. The Russell 2000 fell 1.4 percent.
Wall Street hit a number of milestones on Thursday, the final trading session before the Independence Day holiday, with the Dow topping 17,000 for the first time and the S&P 500 closing at a record high after a strong June jobs report. Continuación...