Stocks Pull Back on Housing Data

Disappointing data on housing starts outweighed a raft of better than expected earnings reports Tuesday

U.S. stocks closed lower Tuesday as disappointing data on U.S. housing starts in September overshadowed positive third-quarter earnings news from bellwethers Caterpillar (CAT) and Apple (AAPL).

September housing starts rose 0.5%, missing market forecasts and paving the way for profit taking as investors weighed current market levels against the outlook for the economy. Other data showed a 0.6% drop in September producer prices.

Further economic news will arrive Wednesday, when the Federal Reserve releases its Beige Book report on U.S. economic conditions.

On Tuesday, the 30-stock Dow Jones industrial average ended lower by 50.71 points, or 0.50%, at 10,041.48. The broad Standard & Poor's 500-stock index was down 6.85 points, or 0.62%, at 1,091.06. The tech-heavy Nasdaq composite index lost 12.85 points, or 0.59%, to 2,163.47.

On the New York Stock Exchange, 20 stocks were lower in price for every 11 that advanced. Breadth on the Nasdaq was 20-7 negative. basic materials, utilities, industrials sectors faltering.

The market was unable to extend its gains after a solid advance for U.S. stocks on Monday.

Treasuries and the dollar index rose. Gold and crude oil futures fell.

Chemical maker DuPont and health insurer UnitedHealth Group Inc. each cited cost-cutting efforts as they reported better results for the July-September period from a year earlier. Pfizer Inc., the world's biggest pharmaceutical company, also reported that lower expenses boosted its earnings.

Disappointing results from Bank of New York Mellon (BK) did little to sway the market. The financial company took a hefty charge during the third quarter to restructure its securities portfolio, resulting in a loss of almost $2.5 billion.

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