U.S. stocks retreated on Tuesday as investors cash in on previous session's big gain and wait for the bank stress test result.

Federal Reserve Chairman Ben Bernanke told the Joint Economic Committee of Congress On Tuesday that the economy should see bottom and start growing again later this year. But he also warned unemployment is still expected to rise.

The Institute for Supply Management's April report on the services sector showed a seventh straight month of contraction, but the pace of decline slowed more than expected.

Investors anxiously await the result of the bank stress test, which is to be released on Thursday. The Wall Street Journal reported that about 10 out of the 19 banks undergoing the tests will be required to raise more capital.

In earnings, Kraft Foods Inc. said its first-quarter profit rose by 10 percent despite a drop in sales. CVS Caremark Corp.'s profit fell slightly on charges and higher costs, outweighing a 12percent jump in the drugstore operator's revenue from higher pharmacy sales.

The Dow Jones industrial average retreated 16.09, or 0.2 percent, to 8,410.65. The Standard & Poor's 500 index fell 3.44, or 0.4 percent, to 903.80. The Nasdaq composite index lost 9.44, or 0.5 percent, to 1,754.12.

(Xinhua News Agency May 6, 2009)