Wall Street dips as housing, PPI data offsets earnings

US 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 US homes rose less than expected in September, while US 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 dropped 50.56 points, or 0.50%, to 10,041.63. The Standard & Poor's 500 Index fell 5.80 points, or 0.53%, to 1,092.11. The Nasdaq Composite Index slid 9.36 points, or 0.43%, to 2,166.96.

Apple Inc jumped 4.8 percent to $198.95, a day after it reported quarterly profit that streaked past estimates, as sales of iPhones and Mac personal computers hit quarterly records.

Heavy machinery maker Caterpillar Inc climbed 3.3% to $59.69 after posting stronger-than-expected quarterly earnings and raising its full-year forecast.

DuPont Co reported an 11 percent jump in third-quarter profit, topping estimates, but narrowed its earnings forecast for the year. The stock shed 2% to $33.94.

Drugmaker Pfizer Inc's quarterly profit was up and beat estimates, while diversified US. manufacturer United Technologies Corp reported a drop in income, but still beat estimates. Pfizer shares gained 2.2% to $18.37, and United Tech slipped 0.5% to $65.10. 

Coca-Cola Co dipped 1.5% to $53.97 after reporting adjusted third-quarter earnings that were a penny above expectations.

"Good earnings have increasingly been expected. This is a market where traders have been looking for an excuse to book some gains," added Ghriskey.

Boeing Co fell 4% to $51.38 after the airplane maker was downgraded to "underweight" by Morgan Stanley. The firm said the shares may face downward pressure due to likely poor aircraft order demand.

Adecco SA, the world's largest staffing company, agreed to buy US rival MPS Group Inc for $1.3bn. MPS shares surged 21.7% $13.56.