U.S. Stocks Close Lower on Weak Economic Data

U.S. stocks closed lower on Tuesday as retail sales inched up just 0.3 percent in January, which was weaker than economists had expected.

The Commerce Department said retail sales were up 0.3 percent in January, trailing forecasts for a jump of 0.5 percent. Excluding autos, sales were also up 0.3 percent, half as much as it had been anticipated.

Also on Tuesday, the Federal Reserve Bank of New York reported that the Empire State Manufacturing index rose 3.5 points to 15.4 in February, indicating the manufacturing sector in New York area was continuing to improve.

The market was also weighed down by weaker energy and technology stocks.

Meanwhile, NYSE Euronext and Germany's Deutsche Boerse announced on Tuesday that they had reached a final agreement on business combination to form the biggest exchange operator in the world.

The Dow Jones industrial average dropped 41.55 points, or 0.34 percent, to 12,226.64. The Standard & Poor's 500 Index was down 4. 31 points, or 0.32 percent, to 1,328.01. The Nasdaq lost 12.83 points, or 0.46 percent, to 2,804.35.