NEW YORK — The problem with rising expectations is they get tougher to beat.

Investors broke the stock market's four-day rally and sold off after data on the services industry and factory orders came in below forecasts. Factory orders actually rose in April, but the report disappointed investors who anticipated a larger increase.

Alan Gayle, senior investment strategist at RidgeWorth Capital Management, said he began increasing his stock holdings in March on signs that economic data was becoming "less bad."

Now, Gayle said, "'less bad' is not good enough."