S&P 500, Dow slip as telecom stocks eclipse upbeat results from retailers

Despite strong results, Home Depot's shares came under pressure due to the lack of a solid outlook and disappointing housing data.

The S&P 500 and the Dow fell on Tuesday as sharp declines in telecom stocks and a weak housing starts data overshadowed upbeat earnings from Walmart and Home Depot.

AT&T Inc shed 7%, the top drag on the benchmark S&P 500, as it extended declines from Monday, when the telecoms firm said it would cut its dividend payout ratio as a result of its $43 billion media asset deal with broadcaster Discovery Inc.

T-Mobile and Verizon Communications also dropped 2.6% and 1.2%.

The three main indexes opened higher after Walmart, the world's biggest retailer, raised its full-year earnings forecast and Home Depot reported