Stocks were lower in afternoon trading Wednesday as investors shrugged off some good news and worries about the recovery gripped the market.
And, the data today backed up those fears: New-home sales dropped 3.6 percentin September and August's gain was revised lower. Economists had expected sales to rise. That piled on to the bad news for the housing sector after an earlier report showed mortgage applications fall for the third week in a rowlast week.
And Goldman Sachs slashed its forecast for third-quarter GDP to 2.7 percent from 3 percent. The government's first read on Q3 GDP is due out on Thursday.
Investors shrugged off a report that showed durable-goods orders rose 1 percentin September, though compared to last year fell more than 24 percent.
The tech-heavy Nasdaq was the hardest hit of the three indexes as investors have begun to unwind some of their recovery trades in tech and consumer discretionary. Those sectors were among the hardest hitin yesterday's session.
The Nasdaq is now lower for October, though the Dow and S&P 500 are still higher for the month.
In afternoon trading, Alcoa, Caterpillar and GE were the biggest drags on the Dow. Telecoms AT&T and Verizon were at the top of the pack.
Oil fell, trading below $78 a barrel, after a report showed crude inventories rose by just 778,000 barrels last week. Economists had expected a 1.7 million build.
The Treasury's five-year auction today was met with decent demand but it wasn't as strong as the other auctions this week. Tomorrow is the seven-year auction.
On the earnings front, ConocoPhillips reported a sharp drop in earnings and revenue from a year earlier but still beat expectations.
This came after Visa beat on both earnings and revenue with its results after the bell Tuesday, and raised its dividend.