U.S. stocks fell on Tuesday as strong quarterly results from bellwethers such as Apple and Caterpillar were offset by disappointing data on housing starts and inflation.
New construction of U.S. homes rose less than expected in September, while U.S. producer prices declined unexpectedly, largely due to a drop in energy prices.
In any recovering economy, especially in the early stages where we are now, you are going to see some weak economic numbers, and we certainly see this in the PPI numbers and the housing numbers, said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.
The Dow Jones industrial average <.DJI> dropped 50.56 points, or 0.50 percent, to 10,041.63. The Standard & Poor's 500 Index <.SPX> fell 5.80 points, or 0.53 percent, to 1,092.11. The Nasdaq Composite Index <.IXIC> slid 9.36 points, or 0.43 percent, to 2,166.96.
Heavy machinery maker Caterpillar Inc
Drugmaker Pfizer Inc's
Good earnings have increasingly been expected. This is a market where traders have been looking for an excuse to book some gains, added Ghriskey.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)