U.S. stocks slip as E.Z. concerns weigh; Dow Jones down 0.19%

Investing.com - U.S. stocks slipped lower on Tuesday, after concerns over the worsening debt crisis in the euro zone overshadowed stronger-than-forecast growth in retail sales and New York-area manufacturing activity.

During early U.S. trade, the Dow Jones Industrial Average slipped 0.19%, the S&P 500 index fell 0.11%, while the Nasdaq Composite index declined 0.15%.

The U.S. Commerce Department said retail sales rose more-than-expected in October, increasing 0.5%, while core retail sales also beat expectations, climbing 0.6%.

Also Tuesday, the Federal Reserve Bank of New York said that its general business conditions index improved by 9.1 points to 0.6 in November from minus 8.5 in October.

Market sentiment was hit after Italy's 10-year bond yields rose to near unsustainable levels, climbing above 7% earlier, while the yield on Spanish 10-year bonds rose above 6% for the first time since August.

Home Depot saw shares climb 0.99% after the home improvement retailer beat earnings estimates and raised its outlook for the third time in six months amid efforts to improve distribution and boost customer service.

The technology sector also contributed to gains, as shares in Intel jumped 1.14%, while Hewlett-Packard and Cisco Systems advanced 1.13% and 0.26% respectively.

Meanwhile, financial stocks were mixed, with shares in Goldman Sachs rising 0.22% and JP Morgan advancing 0.18%, while Citigroup saw shares decline 0.92%.

Bank of America posted a 0.50% gain, after the sale of most of its shares in China Construction Bank earned the U.S. lender a strong profit, but also underlined that BofA, like other foreign financial groups, found strategic gain in the Chinese stake it built.

On the downside, Wal-Mart saw shares plummet 2.24% after the world's biggest retailer narrowly misses profit expectations, although same-store sales rose more-than-expected.

Other stocks in focus included Dell, slated to post third-quarter results after the closing bell.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.26%, France’s CAC 40 plummeted 1.63%, Germany's DAX dipped 0.60%, while Britain's FTSE 100 posted a 0.07% decline.

During the Asian trading session, Hong Kong's Hang Seng Index dropped 1.2%, while Japan’s Nikkei 225 Index slumped 0.72%.

Earlier in the day, a report showed that producer price inflation in the U.S. eased more-than-expected in October, declining 0.3% compared to expectations for a 0.2% drop.