The Dow and the S&P 500 dropped to session lows on Tuesday, while the Nasdaq trimmed gains, as investors worried that the economic recovery's pace might not be as strong as initially hoped.

* While a rebound in May housing starts pointed to some stabilization in that sector and a smaller-than-expected rise in producer prices suggested inflation pressures were muted, another report showed industrial production logged a steeper-than-expected slide last month.

* Mixed quarterly results from Best Buy Co Inc , the largest U.S. consumer electronics retailer, also fueled some caution. The stock was off nearly 7 percent at $36.12.

* The Dow Jones industrial average <.DJI> dropped 28.34 points, or 0.33 percent, to 8,583.79. The Standard & Poor's 500 Index <.SPX> dropped 2.23 points, or 0.24 percent, to 921.49. But the Nasdaq Composite Index <.IXIC> gained 2.51 points, or 0.14 percent, to 1,818.89.

(Reporting by Ellis Mnyandu; Editing by Jan Paschal)