Wall Street recap: Tech, housing numbers cited as stocks drop

Tech, housing numbers cited as stocks drop

NEW YORK Disappointing forecasts from technology companies and an unexpected drop in home construction added to worries about the economy and sent stocks modestly lower.

The drop yesterday came a day after major stock indicators closed at 13-month highs. The Dow fell 11.11, or 0.1 percent, to 10,426.31, after sliding as much as 77 points in morning trading.

Analysts say the market has been due for a break after the fast ascent.

John Brady, senior vice president of global interest rate products at MF Global in Chicago, said that as the end of the year approaches, traders are looking foremost at preserving the gains amassed in an eight-month rally.

"It's a bit of a consolidation trade," he said. "Traders are scared to go too far out on a limb here and do anything too risky late in the year."

Technology shares fell after BMO Capital Markets said BlackBerry maker Research in Motion Ltd. faces increased competition as consumers opt for less-expensive phones. Meanwhile, forecasts from software makers Autodesk Inc. and Salesforce.com fell short of analysts' expectations.

The day's economic news provided investors more reason for caution. The Commerce Department said construction of homes and apartments fell 10.6 percent in October to an annual rate of 529,000, well below the pace of 600,000 that economists polled by Thomson Reuters expected.