US STOCKS-Wall St dips on caution over Ukraine and Gaza
* VIX gains but still at low levels
* Yum Brands, McDonald's shares down on China food safety
* EMC jumps on report of activist investor stake
* Dow off 0.2 pct; S&P 500 down 0.2 pct; Nasdaq off 0.04 pct (Updates to afternoon trading, changes byline)
By Ryan Vlastelica
NEW YORK, July 21 (Reuters) - U.S. stocks declined on Monday, though the major indexes were off their session lows, as investors remained wary of riskier assets because of instability in Ukraine and Gaza.
The day's losses were broad, with all 10 primary S&P 500 sector indexes down for the day and the S&P 500 falling under its 14-day moving average, a sign of weakness in the short term. The move extended recent equity market volatility. On Thursday, the S&P 500 posted its biggest one-day drop since April, a selloff that was followed by a 1 percent rally on Friday.
Israeli jets, tanks and artillery pounded Gaza again as the death toll from a two-week conflict topped 500 amid growing international calls for a ceasefire. Fighters from Hamas, which controls Gaza, have repeatedly tried to infiltrate Israel over the past week through hidden tunnels.
Fighting had flared in the Ukrainian city of Donetsk as investigators began to inspect the bodies. The United States and its allies have pointed the finger at pro-Russian rebels and at Moscow itself over the downing of the plane with 298 people aboard. Russia has denied involvement and blamed the Ukrainian military. Continuación...