Stocks Slip As Wall Street Halts Upward Momentum - U.S. Commentary

(RTTNews) - Stocks are showing modest losses in the early stages of Tuesday's session. Profit taking amid a lack of market-moving news has taken the major averages off their recent highs.

The Dow Jones Industrial Average is lower by about 44 points to 18,592. The S&P 500 is down nearly 8 points to 2,183. And the Nasdaq has dipped 22 points to 5,241.

The early slide comes after another positive session the day before. Monday's modest advance extended the recent upward momentum on Wall Street and allowed the major U.S. averages to set new record closing highs.

There have been a couple of noteworthy economic reports and an earnings report from Home Depot (HD). However, none of these made a significant impact on trading.

The U.S. Commerce Department said housing starts rose 2.1 percent to an annual rate of 1.21 million units in July. Economists had expected the measure to come in at 1.180 million.

Additionally, the Commerce Department said building permits, an indicator of future housing demand, came in at an annual rate of 1.15 million in July, essentially flat with June's result.

The U.S. Department of Labor revealed that its consumer price index was unchanged in July. This followed an increase of 0.2 percent in June. Economists had expected prices to come in unchanged for the month.

Core prices, which exclude the volatile food and energy sectors, ticked up by 0.1 percent in July. Economists were expecting a 0.2 percent increase.

Looking to corporate headlines, American International Group Inc. (AIG) has agreed to sell United Guaranty Corporation to Arch Capital Group Ltd. (ACGL). The total consideration of the deal is $3.4 billion, which comprises of $2.2 billion in cash and about $1.2 billion in newly issued Arch stock.

In earnings news, Home Depot Inc. (HD), the world's largest home improvement retailer, reported a higher profit in its second quarter that met analysts' expectations. Increased net sales and comparable store sales contributed to the improved bottom line.

Looking ahead, Home Depot lifted its fiscal 2016 earnings forecast, but below market estimates. The company backed sales growth view.