U.S. stocks closed mixed on Tuesday as disappointing data worried investors and some tech companies' bad performance dragged the markets.
The latest economic data made investors concerned about the economic prospect. Housing data showed that builders started construction on fewer new homes in April while permits also fell, suggesting the recovery of housing market still has a long way to go.
According to the Commerce Department, housing starts dropped 10. 6 percent to an annual rate of 523,000 last month, while economists were expecting a moderate rise.
The Federal Reserve said in a separate report that factory production fell 0.4 percent in April, its first decline in 10 months, thanks to mainly a drop in auto manufacturing after the Japan earthquake and tsunami led to a parts shortage.
Meanwhile, dismal outlook from big tech names also weighed on the market. Hewlett Packard, the world's largest personal computer maker, reported a profit rise in the most recent quarter. However, the company cut its full-year outlook because of weak PC sales, dragging its stocks down nearly 9 percent, one of the worse performers in the market.
Another computer maker Dell Inc. said Tuesday that its earnings surged in the first quarter on a mix of cost reductions and improved service revenues. It reported a net income of 945 million dollars, or 49 cents a share, compared with net income of 341 million dollar or 17 cents a share for the same period last year. Its shares surged more than 4 percent on Tuesday, but failed to lift the technology sectors.
Retail giant Wal-Mart also slipped 1.3 percent after it reported its same-store sales have fallen for two years. Home Depot Inc's sales also slipped in the first quarter, but the retailer's income jumped 12 percent and beat analysts' expectations. Its shares rose 1.2 percent.
Basic materials, energy sectors were among the winners on Tuesday as dollar kept on dipping against other major currencies, while transportation and technology sectors were among the laggards.
According to Thomson Reuters data, 69 percent of the 464 companies in the S&P 500 which have reported earnings so far, have topped analysts' estimates.
As the deadline of the Federal Reserve's second round of quantitative easing policy is approaching, investors' attentions began to shift to the minutes of Federal Opening Market Committee which is scheduled to release on Wednesday.
The Dow Jones industrial average dropped 68.79 points, or 0.55 percent, to 12,479.58. The Standard & Poor's 500 was down 0.49 points, or 0.04 percent, to 1,328.98. The Nasdaq Composite Index gained 0.90 points, or 0.03 percent, to 2,783.21.
