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Novavax ( NVAX ) drops on cut to annual revenue forecast

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Honeywell ( HON ) jumps after Elliott discloses stake

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Russell 2000 falls more than 1%

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Indexes down: Dow 0.52%, S&P 500 0.10%, Nasdaq 0.02%

(Updated prices at 2:31 p.m ET/ 1931 GMT)

By Sinéad Carew and Lisa Pauline Mattackal

Nov 12 (Reuters) - Wall Street's main indexes fell on

Tuesday as investors booked profits from post-election gains and

awaited U.S. inflation data due in the coming days.

The three major indexes had rallied to record highs since

the Nov. 5 U.S. election as investors bet on a boost to equities

from President-elect Donald Trump's proposed tax cuts and the

prospect of easier regulatory policies.

But investor enthusiasm was dampened on Tuesday. European

shares lost 2% as European Central Bank policymakers warned that

increased tariffs from Trump would hamper global growth.

Some of the stocks expected to perform well under Trump gave

back gains. Shares in electric car maker Tesla were

down close to 5% after rising nearly 40% since the election

results.

The small-cap Russell 2000 index fell 1.5% after

closing at a three-year high on Monday.

Russell Price, chief economist at Ameriprise Financial, said

the decline in stocks overseas pressured U.S. stocks, along with

profit-taking after the rally and ahead of inflation data.

"When we opened up already experiencing some downside with

the very strong run that we've had, investors tend to look to

take some profits just in case stocks continue to slide," Price

said.

On investors' radar is Wednesday's consumer price inflation

data, followed by producer prices inflation and retail sales

data this week, that are expected to provide clues about the

U.S. Federal Reserve's policy path going forward.

The data presents a near-term risk to investments, said

Price. "It very likely is contributing to a little bit of the

downside that we're seeing today."

At 2:31 p.m., the Dow Jones Industrial Average fell

230.63 points, or 0.52%, to 44,062.50, the S&P 500 lost

6.20 points, or 0.10%, to 5,995.15 and the Nasdaq Composite

lost 3.25 points, or 0.02%, to 19,295.51.

Among the S&P 500's 11 major industry sectors, materials

and utilities led declines with more than 1%

losses while consumer staples was among the biggest

gainers.

Markets have already dialed back expectations for

interest-rate reductions over the next year, given strong

economic data and the possible inflationary impact of some Trump

policies.

Richmond Fed President Thomas Barkin said on Tuesday that

the U.S. central bank is ready to respond if inflation pressures

rise or the job market weakens.

The blue-chip Dow was weighed down by declines in healthcare

and financial stocks, including UnitedHealth ( UNH ) and Goldman

Sachs ( GS ), both off around 1%.

Biotech firm Novavax ( NVAX ) dropped 5.8% after cutting its

annual revenue forecast due to lower-than-expected sales of its

COVID-19 vaccine.

Honeywell ( HON ) hit a record high and was last up 3% after

activist investor Elliott Investment said it has built a stake

worth more than $5 billion in the industrial conglomerate.

Declining issues outnumbered advancers by a 3.25-to-1 ratio

on the New York Stock Exchange where there were 281 new highs

and 91 new lows.

On the Nasdaq, 1,350 stocks rose and 2,885 fell as declining

issues outnumbered advancers by a 2.14-to-1 ratio. The S&P 500

posted 51 new 52-week highs and 15 new lows while the Nasdaq

Composite recorded 177 new highs and 109 new lows.