Wall Street consolidates rally, ripples seen (Reuters)

NEW YORK (Reuters)-Wall Street consolidated after its best week in two years on Tuesday with choppy, low volume trading seen throughout the remainder of the summer.

Equities had gathered for five days straight for a gain of 5.6 percent on S & P, recovery from weakness in the last two months. But with question marks over the US economy and the Us debt ceiling, the summer might be a rough.

Linda Duessel, market strategist at Federated investors in Pittsburgh, said that s & P 500 would likely fall back to 1,250 this quarter, around its Lows during the recent selloff.

"He's going to be a quarter of the time," he said. "Confidence is low, the index volatility is low, you have pretty much only professional trading market".

Low Volume should stay in the holiday shortened week, which could increase volatility, especially with the jobs report on Friday that looms large on the horizon. Markets were closed Monday for the feast day of the independence of the United States.

The Dow Jones industrial average (.DJI) fell 32.77 points or 0.26%, up to 12, 550.00. the & 500 Index (Standard Poors.SPX) cadde 5.05 points or 0.38%, up to 1, 334.62. The Nasdaq Composite Index (.4.64 IXIC) lost points, or 0.16%, up to 2 811.39.

Duessel says she expects the S P 500 & to face stiff resistance at 1,350 as the bulls try to grab the market towards

its high around 1.370 recovery.

New orders received by U.S. factories bounced back in may, boosted by demand for transportation equipment, a Government report showed. But the increase of 0.8 per cent was slightly below economists ' forecast.

Co southern Union (SUG.N) advanced 2.8 percent to $ 41.52 after the pipeline operator energy transfer Equity L.P. (ETE.N) raised its offer to buy its rival of 21 per cent to about 5 billion dollars, trumping the 4.9 billion tender offer from Williams Companies Inc (WMB.N).

Immucor Inc. (BLUD) Or increased 30.2 percent to $ 26.99 after diagnostic study, said it has agreed to be acquired by private equity group TPG Capital, for a fully diluted equity-value of 1.97 billion.

(Reporting by Edward Krudy; Editing by Kenneth Barry)

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