U.S. stocks on Tuesday fell for the first time in four days after Goldman Sachs predicted anks will have to raise $65 billion in new capital to cover losses in the face of economic data that further highlights soaring inflation amidst a troubled housing market.
Goldman Sachs posts a lower profit, but beats estimates; U.S. housing starts fall to a 17-year low. American Express and Bank of America were recently the biggest drags on the Dow, dropping more than 2 percent each.
As of 12:02 p.m. EDT, the Dow Jones Industrial Average slid 75.96 points, or 0.62% to 12194.50, the Standard & Poor's 500 index dropped 4.64 points, or 0.34%, to 1355.50 and the Nasdaq Composite Index lost 7.08 points, or 0.29%, to 2467.73.
Goldman Sachs Group Inc., the world's largest investment bank, triggered buying on Wall Street after easily beat the Street with a profit of $4.58 a share and $9.42 billion in net revenue. Mean estimates from analysts polled by Thomson Reuters were for a profit of $3.42 on $8.74 billion in revenue.
The Labor Department's producer price index, which is the industrial equivalent of the consumer price index, showed inflation rose by a worse-than-expected 1.4% last month.
Another report illustrated a desperate attempt by builders to reduce the supply of homes, with the Commerce Department estimating construction began on 3.3% fewer homes in May.
Boeing, the world's second-largest commercial airplane maker, lost 47 cents to $74.55.