NEW YORK, USA - Wall Street stocks drifted mainly lower Wednesday, as investors consolidated recent hefty gains in the face of some disappointing news on US inflation and housing starts.

The technology sector led the decliners amid a weak outlook from key firms in the sector.

The Dow Jones Industrial Average drifted down 13.08 points (0.13 per cent) to 10,424.34 at the closing bell, recouping most of the market's early losses.

The technology-rich Nasdaq composite lost 10.64 points (0.48 per cent) to 2,193.14 and the Standard & Poor's 500 broad-market index shed a fractional 0.64 points (0.06 per cent) to a preliminary close of 1,109.68.

The market pulled back after hitting fresh 2009 highs on Tuesday. Action came after a report showed US housing starts tumbled 10.6 per cent in October and permits fell 4.0 per cent, suggesting ongoing weakness in the troubled real estate sector.

A separate report showed US consumer prices rose by a higher than expected 0.3 per cent in October primarily due to higher gasoline prices.

Analysts at Charles Schwab & Co. said the consumer price report is 'possibly reviving some inflation concerns that have been subdued' and noted that the news on home construction had served to 'sour sentiment on the Street.'

Scott Marcouiller at Wells Fargo Advisors said the technology sector was hit by 'disappointing forecasts by Salesforce.com and Autodesk,' two key companies in the sector.