Apple earnings drag technology stocks lower

Stocks were mixed in midday trading Wednesday as investors weighed a rare earnings miss by Apple Inc against a surprise jump in new-home construction last month.

Apple slumped four per cent after the company's income and revenue fell short of forecasts. It was a rare miss for the company, which had jumped 31 per cent this year through Tuesday.

Apple blamed the shortfall on a later-than-usual release of its newest iPhone.

The Nasdaq composite slid 20, or 0.8 per cent, to 2,637. The S&P 500 was down 2, or 0.2 per cent, to 1,223.

The Dow was up 13 points, or 0.1 per cent, 11,591 at 12:10 p.m. Eastern.

The disappointing results from Apple were tempered by a rebound in the housing market in September. Builders began new homes at the fastest pace in 17 months. Most of the gains came from the construction of new apartments. The pace is still about half what economists say is consistent with a healthy housing market.