Midday Report: ValueAct Takes Morgan Stanley Stake; U.S. Stocks Slip

Stocks backed off records as stronger-than-expected economic data and hawkish commentary from the Federal Reserve's William Dudley increased the chances of a near-term rate hike. July housing starts and industrial production topped estimates earlier in the day.  Dick's Sporting Goods (DKS) - Get Report rose after besting quarterly estimates and issuing upbeat current-quarter guidance. The sports retailer also reported a surprise increase in same-store sales over its recent quarter. ValueAct Capital disclosed a $1.1 billion stake in Morgan Stanley (MS) - Get Report , around 2% of shares outstanding. The firm said it is not calling for any changes and believes the stock is undervalued.  Hain Celestial (HAIN) - Get Report tanked after being hit with downgrades at Piper Jaffray, Wedbush and Barclays. Hain delayed the release of its full-year results and announced accounting concerns overnight.