Stocks struggle at the start

NEW YORK (CNNMoney.com) -- Stocks moved lower in early trading Tuesday after a mixed reading on housing starts and some disappointing earnings news.

The Dow Jones industrial average fell 0.2 percent about a half hour into the session. The broader S&P 500 index also fell about 0.2 percent while the tech-laden Nasdaq composite index slid 0.4 percent.

In the latest from the battered real estate sector, the Commerce Department reported that housing starts fell to an annual rate of 1.474 million in May, down from 1.53 million in April - roughly in line with economists' estimates in a survey by Briefing.com.

But applications for building permits, a key sign of builder confidence, came in at an annualized rate of 1.5 million, up from 1.46 million last month and beating the projected rise of 1.47 million.

European markets edged lower in midday trading. In Asia, Japan's Nikkei index finished slightly higher.

Bond prices rose, pushing the yield on the benchmark 10-year note down to 5.12 percent from 5.14 percent late Monday. Bond prices and yields move in opposite directions.

Oil prices ticked lower after hitting a nine-month high on Monday. U.S. light crude oil for July delivery sank 46 cents to $68.63, after climbing more than a dollar the previous session to the highest since September.

On the corporate front, Yahoo (up $0.16 to $28.28, Charts, Fortune 500) announced late Monday that Terry Semel would step down as CEO, to be replaced by company co-founder Jerry Yang. The stock was little changed in early trading.

In earnings news, electronics retailer Best Buy (down $2.18 to $45.83, Charts, Fortune 500) reported lower quarterly profit that missed Wall Street estimates, sending shares sliding about 4 percent in morning trade.

Overseas, mining group BHP Billiton (up $0.05 to $58.65, Charts) reportedly is considering a rival bid for aluminum producer Alcan (down $0.18 to $83.37, Charts). Dow component Alcoa (up $0.01 to $41.89, Charts, Fortune 500) has made a $28.7 billion hostile offer for Alcan.