Most U.S. Stocks Fall on FedEx Outlook, Drop in Housing Starts

Most U.S. stocks fell, with a late- day rebound failing to extend yesterday’s rally in the Standard & Poor’s 500 Index, after housing starts dropped and FedEx Corp.’s profit forecast trailed estimates.

FedEx slid 6 percent after saying rising health-care and pension costs will constrain earnings. Fannie Mae and Freddie Mac sank more than 38 percent as regulators ordered them to delist their stock from exchanges. BP Plc’s U.S. shares rose 1.4 percent, triggering a short-lived rebound in energy shares that briefly pushed the market higher, after agreeing to a $20 billion fund to pay damages from the Gulf of Mexico oil spill.

About three stocks fell for every two that rose on U.S. exchanges. The S&P 500 slipped 0.1 percent to 1,114.61 at 4 p.m. in New York after climbing as much as 0.3 percent. The Dow Jones Industrial Average gained 4.69 points, or less than 0.1 percent, to 10,409.46. (more)