US Stocks Fall After Economic News; Energy Slips
Stocks lost further ground after news homebuilder sentiment remains stuck in the doldroms, and business inventories rose.
The Dow Jones Industrial Average fell more than 60 points after ending five points lower on Monday.
Most Dow components fell, led by Exxon Mobil [XOM 83.07 
The S&P 500 and the Nasdaq also fell, after hitting new multi-year highs on Monday. The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose above 16.
Among key S&P 500 sectors, energy, telecom and materials fell, whilefinancials rose.
As expected, NYSE Euronext [NYX 38.34
In economic news, business inventories in December gained 0.8 percent, the Commerce Department report, up from a 0.4 percent gain in November. Economists had expected inventories to rise 0.7 percent, up from the previously reported 0.2 percent, according to Reuters.
And a reading on home builder sentiment was unchanged at a low level for the fourth consecutive month, according to The National Association of Home Builders/Wells Fargo Housing Market Index. The index was 16, in line with expectations.
Elsewhere on the U.S. economic front, retail sales rose 0.3 percent in January, the Commerce Department reported Tuesday. That was less than the 0.6 percent gain expected by economists polled by Reuters, thanks to weaker sales at building materials' stores and restaurants. In December, sales rose 0.5 percent, less than the previously reported 0.6 percent gain.
Also, U.S. import prices soared 1.5 percent, the Labor Department said. That's nearly twice the 0.8 percent gain expected by economists surveyed by Reuters. A 3.4 percent gain in petroleum prices helped to push import prices higher, the government said. Export prices rose 1.2 percent, beating the 0.7 percent gain expected by economists.
Meanwhile, a gauge of manufacturing in New York State rose to 15.43 in February, boosted by gains in inventories, its highest level since June, and up from 11.92 in in January, according to the New York Fed's Empire State index. Economists surveyed by Reuters had expected the index to rise to 15.00.
Inflation is the U.S. will take center stage later this week when the government releases figures on producer prices on Wednesday and consumer prices on Thursday. In the U.K., consumer prices surged 4 percent in January, double the Bank of England's target, which will force the U.K. central bank to consider a hike in interest rates.
Inflation in China, meanwhile, rose 4.9 percent in January, which was less than expected, figures released on Tuesday showed, though price pressures are strong, which should force the Chinese central bank to continue tightening monetary policy.
In other exchange news, Brazil's BM&FBovespa, the world's fourth-largest financial exchange operator, is closely watching for tie-up opportunities, Chief Executive Edemir Pinto told Reuters.
On the Calendar:
TUESDAY: Treasury international capital, business inventories, housing market index, Cleveland Fed President speaks, Dodd-Frank hearing, Geithner testifies before U.S. House, Fannie/Freddie reform hearing, credit-card default rates reported, 13-F filings due; earnings after-the-bell from Dell and Tesla.
WEDNESDAY: Weekly mortgage applications, housing starts, PPI, industrial production, House hearing on FCIC report, oil inventories, FOMC minutes; earnings before-the-bell from Comcast; earnings after-the-bell from CBS, NetApp and Nvidia.
THURSDAY: Weekly jobless claims, CPI, leading indicators, Philadelphia Fed survey, Chicago Fed President speaks, money supply; earnings before-the-bell from Barrick Gold, AngloGold and Nordstrom.
FRIDAY: Earnings before-the-bell from Campbell Soup.
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