NEW YORK (AP) Stocks fell in early morning trading Friday as the dollar continued to strengthen, and after a week of mixed economic reports.

Overseas markets declined. European Central Bank President Jean-Claude Trichet said the ECB plans to start pulling back some of its stimulus programs as the economy begins to recover.

With little U.S. economic news to help sway the market Friday, the dollar is again pressuring stocks. A strengthening dollar drives down foreign demand for commodities, which are often traded in dollars. It also can depress U.S. exports which become more expensive as the dollar rises.

That can hurt the price of energy and materials stocks that are closely tied to commodities and companies with large operations overseas.

A disappointing earnings report from computer maker Dell Inc. is also weighing on the market. Dell said after the market closed Thursday that sales of its computers to big businesses remain sluggish. Its quarterly revenue and profit missed analysts' expectations.

As investors poured out of stocks, they moved into safer investments like Treasury bonds. The yield on the three-month T-bill, which moves opposite its price, is hovering near its lowest level of the year, which it hit Thursday.

In early morning trading, the Dow Jones industrial average fell 19.65, or 0.2 percent, to 10,312.79. The Standard & Poor's 500 index declined 3.62, or 0.3 percent, to 1,091.28, while the Nasdaq composite index fell 36.32, or 1.7 percent, to 2,145.72.

The ICE Futures US dollar index, which measures the dollar against other major currencies, rose 0.42 to 75.71.

The yield on the three-month T-bill was 0.02 percent after falling as low as 0.005 percent late Thursday. The yield on the benchmark 10-year note rose to 3.36 percent from 3.34 percent.

Homebuilder D.R. Horton Inc. said its fiscal fourth-quarter loss narrowed as it took smaller write downs on its inventory. Even as its losses shrank, revenue fell 42 percent as the housing market remained unsteady.

''Investors seem to need a constant reassurance with where we are in the economic recovery,'' said Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group in San Diego. ''We just haven't gotten it in the past few days.''

D'Arcy expects stocks to continue to sell off Friday given the disappointing economic data earlier this week.

Weak housing and mortgage data the past two days has helped bring the market's nearly relentless rise to a halt amid concerns any economic recovery will be slow and bumpy. On Thursday, the Mortgage Bankers Association provided fresh evidence that the housing market is still fragile. The trade group said more than 14 percent of homeowners with a mortgage were behind in their payments or facing foreclosure at the end of September.

Technology shares fell sharply after an analyst downgraded the chip sector. The tech-heavy Nasdaq composite index fell 1.7 percent. The Dow fell 0.9 percent, while the S&P declined 1.3 percent.