US stocks ended mostly lower with bonds yesterday as blue chip issues retreated from Monday's record high amid persistent uncertainty about the federal budget and an economic slowdown.

On Wall Street, the Dow Jones average of 30 industrial stocks was down 27.09 at 5192.27, erasing most of Monday's record setting gain.

Declining issues outnumbered advancers by a thin margin on the New York Stock Exchange. Broad market indexes were mostly lower.

Mr David Bostian, chief economist at Herzog, Heine, Geduld Inc, said the weakness may only be a short term pullback from recent gains with investors being cautious before President Clinton's State of the Union address last night.

"People want to see what the president will say. . . even though it will probably be a political dialogue," Mr Bostian said.