* NAHB homebuilder index on tap
* AMD shares drop as CFO to leave
* FedEx dips on results, outlook
* Indexes down: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.2 pct
By Edward Krudy
New York, Sept 18 (Reuters) - Wall Street retreated from
multiyear highs for a second day on Tuesday as investors looked
to upcoming economic data this week to help extend a rally that
has been largely driven by central bank stimulus.
U.S. stocks have rallied 7 percent since early August,
propelling the S&P 500 index to the highest in nearly five years
as central banks in Europe and the United States acted to prop
up flagging economies. But analysts say that for the rally to
continue economic data needs to improve.
"If we don't start seeing stronger U.S. economic data and
Chinese, or we don't start seeing strong policy measures out of
the Chinese, then I think we're going be due for a correction,"
said Jack de Gan, chief investment officer at Harbor Advisory
Corp in Portsmouth, New Hampshire.
De Gan said if the economic data does not improve, he would
look for a correction in the S&P 500 back towards the index's
50-day moving average, which is about 5 percent below current
FedEx Corp cut its profit forecast for its fiscal
year 2013 on Tuesday, saying that a weakening world economy had
prompted customers to shift toward lower-priced shipping. The
shares fell 2 percent to $87.60. Earlier this month FedEx warned
the slowing economy was hurting its results.
The NAHB Housing Market Index at 10 a.m. (1400 GMT) is
expected to be little changed in September after unexpectedly
gaining in the previous two months. However, at 37 on the index
sentiment remains well below the 50s to 70s seen in the 1990s
and 2000s. The NAHB data is the first of a series of housing
data this week.
The Dow Jones industrial average dropped 19.70
points, or 0.14 percent, to 13,573.67. The Standard & Poor's 500
Index fell 2.34 points, or 0.16 percent, to 1,463.43. The
Nasdaq Composite Index dropped 7.66 points, or 0.24
percent, to 3,176.29.
Advanced Micro Devices Inc shares fell 7.6 percent.
The firm said Chief Financial Officer Thomas Seifert was leaving
the struggling personal computer chipmaker to pursue other
Weakness in commodity markets looked set to weigh on related
stocks. Copper fell for a second day after a rally triggered
last week by the U.S. Federal Reserve's new stimulus efforts ran
out of steam and investors booked profits. Shares in Freeport
McMoRan Copper & Gold fell 1 percent.
"The market may already have 'prepaid' for the QE3 easing
announcement," said Goldman Sachs in a research note. "For the
equity market moves to extend, an improvement in the macro data
will now need to show up."
European shares and the euro fell on Tuesday as investors
turned their attention from central bank stimulus to slowing
global growth and uncertainty about Spain's desire for an
international aid package.
Dole Food Company Inc will sell two businesses to
Itochu Corp for $1.7 billion in cash - a deal that will
help the world's largest fruit and vegetable producer pay down
its heavy debt load while expanding Itochu's food presence in
new markets such as China. Dole's shares jumped 2.3 percent to