New York – Investors retreated Tuesday, sending stocks moderately lower as existing-home sales slid and volatile oil prices intensified Wall Street’s summer malaise.
The market’s opening sell-off continued after the National Association of Realtors said sales of previously owned homes dropped 2.6 percent in July as mortgage rates crept up. Even with the decline, sales were the third-highest level on record.
The latest snapshot of housing activity suggested that the sizzling housing market may be cooling slightly. Investors have been closely watching home sales, worried that the housing boom is nearing its end. A contraction could hurt consumer spending, since a raft of home equity loans have put cash in consumers’ pockets.
Still, in late August trading, it doesn’t take much to bring stocks down. No major economic reports are due this week, most companies’ second-quarter earnings are out and many investors are on vacation, said Michael Sheldon, chief market strategist at Spencer Clarke LLC.
“We’re not seeing a lot of conviction, either by buyers or sellers, so far this week,” Sheldon said. Of the 10 sectors in the Standard & Poor’s 500, only one, the materials sector, moved a shade more than 1 percent.
The Dow Jones industrial average fell 50.31, or 0.48 percent, to 10,519.58.
Broader stock indicators were narrowly mixed. The Standard & Poor’s 500 index fell 4.14, or 0.34 percent, to 1,217.59, and the Nasdaq composite index fell 4.16, or 0.19 percent, to 2,137.25.
The Bloomberg Colorado Index, a price-weighted list of companies based in the state, fell 0.31 to 302.94.
Bonds rose as stocks fell, with the yield on the 10-year Treasury note at 4.18 percent, down from 4.22 percent late Monday.
The U.S. dollar was down against other major currencies. Gold prices were higher.
Traders also worried as oil prices first rose, then fell. The volatility did not please equity investors, who are concerned that higher gasoline prices are curbing consumer spending. On Saturday, Wal-Mart Stores Inc., the world’s largest retailer, said its third-quarter results would miss analysts’ expectations because of rising oil prices.
