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US STOCKS-Wall St falls as Boeing, data weighs

Published 06/23/2009, 10:43 AM
Updated 06/23/2009, 10:57 AM

* Boeing delays first flight of 787 Dreamliner again

* Home sales data misses expectations

* Dow off 0.3 pct, S&P off 0.1 pct, Nasdaq off 0.3 pct (Updates to midmorning)

By Leah Schnurr

NEW YORK, June 23 (Reuters) - U.S. stocks slipped on Tuesday as Boeing again delayed the first test flight of its Dreamliner aircraft and housing data pointed to a sluggish economic recovery.

Boeing, the Dow's biggest drag, said the inaugural flight of its long-delayed 787 Dreamliner will be postponed so it can reinforce a section of the aircraft. Boeing slid 7.6 percent to $43.34.

Sales of previously owned homes rose at a slower-than-expected pace in May, industry data showed, pointing to a tepid recovery from a severe recession.

"In my view the housing number suggests that things are bottoming, but that's a far cry from improving. I think the markets are focused on how fast the recovery is going to be, and I think it won't be as fast as people are thinking," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.

The Dow Jones industrial average slipped 20.94 points, or 0.25 percent, to 8,318.07. The Standard & Poor's 500 Index was off 0.90 points, or 0.10 percent, to 892.14. The Nasdaq Composite Index eased 4.53 points, or 0.26 percent, to 1,761.66.

Losses were limited by a search for bargains the day after the worst session for stocks in two months. After a sharp rally off March's 12-year lows, the market has pulled back as investors questioned the strength of a recovery and fretted over the possibility of a correction after a three-month run-up.

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