NEW YORK – Wall Street fell on Tuesday, slipping from a 13-month high, as a bounce in the dollar weighed on commodity-linked stocks and a report showed U.S. industrial production rose less than expected.
But losses turned slight as analysts said investors chased performance going into the end of the year, helping to keep equities buoyant.
Home Depot Inc (HD.N), the top U.S. home improvement chain, said it faced a "great deal of pressure" in its markets. and Target Corp (TGT.N), the No, 2 discount retailer, said it was cautious about its fourth-quarter performance. The warnings came even as both posted quarterly earnings that topped estimates.
Target's shares fell 0.4 percent to $50.09, while Home Depot fell 3.1 percent to $26.81. The S&P retailer index (.RLX) fell 1 percent.
Industrial production rose 0.1 percent in October, Federal Reserve data showed, as auto manufacturers scaled back following the end of the "cash for clunkers" program. Investors are worried about the sustainability of the economic recovery when stimulus spending winds down.
"All of this adds up to concern in the markets today about the strength and durability of the recovery and will weigh on recent gains," said Jim Awad, managing director, Zephyr Management in New York.
The Dow Jones industrial average (.DJI) dropped 7.03 points, or 0.07 percent, to 10,399.93. The Standard & Poor's 500 Index (.SPX) fell 1.83 points, or 0.16 percent, to 1,107.47. The Nasdaq Composite Index (.IXIC) lost 2.52 points, or 0.11 percent, to 2,195.33.
The U.S. dollar bounced against a basket of currencies after hitting 15-month lows on Monday, pressuring oil and other commodities. Commodity-linked stocks eased, with aluminum giant Alcoa Inc (AA.N) off 1.1 percent to $13.46.