US STOCKS-Wall Street takes a breather after two-day rally
* U.S. durable goods orders surge, business spending weak
* Fed's Powell eyes rate hike 'fairly soon'
* Abercrombie slumps after sales fall for 13th straight quarter
* Indexes: Dow -0.13 pct, S&P +0.01 pct, Nasdaq +0.11 pct (Updates to afternoon)
By Noel Randewich
May 26 (Reuters) - Wall Street treaded water on Thursday as investors looked for fresh reasons to buy stocks following two straight days of gains.
Investors this week have grown more comfortable with expectations that the Federal Reserve could raise interest rates as soon as June, with many taking the view that such a hike would reflect improvement in the country's sluggish economy.
After gaining 2 percent over the previous two sessions, the S&P 500 traded near flat, with a 0.96 percent dip in the materials index partly offset by a 0.91 percent rise in utilities.
"People are taking their foot off the gas after making a bunch of money, and now they're waiting for the next data point," said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York. Continuación...