U.S. stock markets fell for the first time in a week after Toll Brothers, the nation's largest builder of luxury homes, reduced its sales forecast and signaled to many investors that the housing boom has peaked.

Home builders and makers of construction materials led the retreat. Companies that cater to consumers, including Best Buy and Whirlpool, dropped on speculation that homeowners will curtail spending.

The Dow Jones industrial average fell 46.51, or 0.4 percent, to 10,539.72. The Nasdaq composite index fell 6.17, or 0.3 percent, to 2172.07. The Standard & Poor's 500-stock index lost 4.22, or 0.4 percent, to 1218.59. The S&P index's five home builders were all among the 10 worst performers.

Toll dropped $5.50, to $33.91. The company reduced its sales forecast for next year by 3.8 percent to 6.9 percent, citing regulatory delays in opening new developments, construction backlogs and an easing of demand in some markets. It now expects to sell as many as 10,200 homes, down from a previous projection of as many as 10,600.

D.R. Horton, the second-biggest builder by market value, fell $3.15, to $30.60. KB Home, the fifth-biggest, dropped $3.71, to $63.74. Lennar, the No. 3 builder, fell $3.05, to $55.30.

Best Buy, the largest U.S. electronics retailer, fell $1.61, to $46.80. Whirlpool, the appliance maker seeking to buy smaller rival Maytag, fell $2.52, to $78.45. Home Depot, the largest U.S. home-improvement chain, lost 93 cents, to $40.57.

Movers

Houston Exploration rose $4.10, to $54.86. The oil services company announced a restructuring and a stock buyback program.

Fossil rose $1.84, to $18.78. The watchmaker's third-quarter profit exceeded analysts' forecasts.

Wheeling Pittsburgh lost $3.02, to close at $9.55. The steel company reported a quarterly loss and said it might not be able to fulfill the terms of a loan agreement.

McDonald's rose 30, cents to $34. The company said October sales increased 3.4 percent, boosted by higher sales in Europe and a Monopoly-game promotion in the United States.

Indexes

New York Stock Exchange composite index fell 29.70, to 7489.72.

American Stock Exchange index fell 5.59, to 1678.47.

Russell 2000 index of smaller-company stocks fell 5.01, to 656.23.

Volume

NYSE: 1.96 billion shares, down from 1.98 billion on Monday. Decliners outnumbered advancers 8 to 5.

Nasdaq: 1.62 billion shares, up from 1.61 billion. Decliners outnumbered advancers 3 to 2.

Commodities

Crude oil for December delivery: $59.71, up 24 cents.

Gold for current delivery: $460.90 a troy ounce, up from $459 on Monday.