US: Stocks open lower after housing data

[NEW YORK] Wall Street stocks dipped early Wednesday, extending the prior session's weakness following mixed housing data and solid earnings reports from retailers.

The lackluster opening came after a disappointing July retail sales report sent stocks lower on Tuesday, ending a streak of five straight records for the Dow and S&P 500.

Housing projects started last month fell 7 per cent compared to June to an annual rate of just over 1.5 million units, seasonally adjusted, the Commerce Department said, a drop far greater than economists had expected.

However, building permits issued in the month rose 2.6 per cent, breaking a string of declines and signaling more projects are in the pipeline.

About 15 minutes into trading, the Dow Jones Industrial Average was down 0.2 per cent at 35,256.68.

The broad-based S&P 500 shed 0.2 per cent to 4,440.75, while the tech-rich Nasdaq Composite Index lost 0.1 per cent at 14,640.47.

Large retailers continued to report good earnings for the just-finished quarter. Home-improvement retailer Lowe's surged following its results, while Target declined.

Investors are looking ahead to minutes of the Federal Reserve's July meeting that will be released later on Wednesday. Several top Fed officials have signaled in recent days they support cutting back on stimulus spending soon.

AFP