By Victor Reklaitis and Sara Sjolin, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks mostly pulled back Tuesday, as the S&P 500 lost a little steam after achieving a record close on Friday.

A reading on U.S. manufacturing topped expectations but didn't spark an advance, with the stock market instead starting off September on a down note.

"A lot of that was probably already built into the market," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co., referring to the encouraging manufacturing report. He noted that stocks achieved strong gains in August partly in anticipation of such upbeat economic data.

The S&P 500(SPX) was recently down 2 points, or 0.1%, to 2,001, staying above the milestone level of 2,000. The benchmark hit an intraday record just over 2,006 shortly after the opening bell, but quickly turned negative.

The Dow Jones Industrial Average(DJI) fell 33 points, or 0.2%, to 17,065, while the Nasdaq Composite(RIXF) gained 14 points, or 0.3%, to 4,595.

Movers and shakers: Staples Inc. (SPLS) jumped 8.5%, performing best among S&P 500 stocks, after Credit Suisse hiked its rating for the retailer to outperform.

Apple Inc. (AAPL) gained 0.7% and hit another intraday record, as buzz builds around a Sept. 9 event where the iPhone 6 is expected to be unveiled. Tesla Motors Inc. (TSLA) jumped 5.4%, also hitting an intraday record, as Stifel Nicolaus hiked its rating for the car company to buy and set a $400 price target.

Wynn Resorts Ltd. (WYNN) fared worst among S&P 500 stocks, losing 4.3%. Casino operators fell following news of an August drop in gambling revenue in Macau.

(Read more about the day's jumpiest stocks in the Movers & Shakers column http://www.marketwatch.com/story/apple-may-enter-mobile-payments-tesla-enters-china-2014-08-29.)

What strategists are saying: The S&P 500 topped 2,000 for the first time last week, and analysts already are talking about the next milestone.

Morgan Stanley strategists said in a note on Tuesday that the bull market could run for another five years and carry the S&P close to 3,000.

The stock market is likely to keep "grinding higher," helped by foreign investors for whom it's "the only place to go," said Baird's Bittles. But investors should remain aware of risks in the market, including the fact that zero interest-rate policies mean central bankers can't lower rates to counter outside shocks, according to Bittles.

A pullback by the market isn't surprising given the liquidity that's built up from the Federal Reserve's stimulus efforts, said Colin Cieszynski, chief market strategist at CMC Markets. "It's been defying gravity a little bit," he told MarketWatch.

He predicted a "choppy, churny phase" for stocks for at least a couple of months, noting that September historically has been a weak period for equities. (Read more: Look upon September with caution http://www.marketwatch.com/story/why-september-may-slow-further-sp-records-2014-09-01.)

Manufacturing momentum: The day's data highlight was the Institute for Supply Management manufacturing reading, and that came in at 59.0%, easily topping expectations. Construction spending jumped 1.8% in July, also above expectations, and the final reading for Markit's U.S. manufacturing purchasing managers index was 57.9 in August, down slightly from the flash reading of 58.0.

This week's biggest economic news is expected to be Friday's jobs report. (Read more: Ahead of jobs data, U:S: economy still hitting speed bumps http://www.marketwatch.com/story/us-economy-still-hitting-speed-bumps-2014-08-31.)

Other markets: Asian equities closed mainly higher, while European stocks finished narrowly mixed. The dollar advanced against most major currencies, putting pressure on dollar-denominated commodity prices. Metals prices declined across the board, while oil prices moved sharply lower as well.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Apple (NASDAQ:AAPL)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Apple Charts.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Apple Charts.