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US stocks dropped on Tuesday as a disappointing outlook from leading home builder Toll Brothers Inc raised concerns that the housing sector, an important source of the economy's growth, may be slowing.
Shares of Toll Brothers plunged 11.5 percent to $34.92 after the luxury home builder posted record fourth-quarter revenue, but warned new home deliveries and earnings next year would probably fall short of its forecast.
The Dow Jones industrial average was down 39 points, or 0.37 percent, at 10,547.49. The Standard & Poor's 500 Index was down 3.53 points, or 0.29 percent, at 1,219.28. The technology-laced Nasdaq Composite Index was down 4.14 points, or 0.19 percent, at 2,174.10.

Copyright Reuters, 2005

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