Stocks Slide After Drop in Home Sales
Stocks declined Tuesday after a surprise drop in existing-home sales. The dollar rose agains the euro and commodity stocks weakened.
Stocks had opened higher as consumer discretionary and tech stocks rebounded after a late selloff in the previous session.
The Dow Jones Industrial Average was down slightly after losing 0.1 percent on Monday and snapping a four-session winning streak.
Alcoa, Caterpillar and Home Depot were among the biggest drags on the Dow.
The dollar rose and the yuan slipped after Chinese state-owned bank snapped up dollars in what some analysts said may be another way for the Chinese central bank to keep the currency's appreciation in check. This came after weekend news that China planned to loosen its peg on the yuan to the dollar, a move that had initially given stocks a boost.
JPMorgan shares wobbled after the bank shook up its management.
Walgreen slipped after the drugstore chain reported a weaker-than-expected profit.
On the economic front, existing-home sales fell 2.2 percentin May from April, the National Association of Realtors reported. Economists had expected a 5.5 percent increase, according to a survey by Reuters.
The Treasury will sell $40 billion in 2-year notes later, with the results available shortly after 1 pm New York time. It will follow up by selling $38 billion in 5-year notes Wednesday and $30 billion in 7-year notes Thursday.
The Federal Reserve's Open Market Committee begins its two-day policy meeting Tuesday, issuing its latest pronouncement on interest rates and the economy Wednesday at around 2:15 pm.
Earthlink filed a petition with the FCC to block the planned merger of Comcast and NBC Universal (NBC is the parent company of CNBC; both are owned by GE ). Earthlink says the deal would be anti-competitive.
In Europe, a German newspaper reported that the country's borrowing needs are likely to be much lower than forecast for this year and next. The UK is set to announce significant spending cuts and tax hikes in an effort to enact a massive fiscal tightening. And a report from Moody's says Spain's banks are healthier than financial market participants generally believe.
TUESDAY: 2-yr note auction; Flash Crash hearing; 2-day FOMC meeting starts; primary runoff elections; Earnings from Adobe after the bell
WEDNESDAY: Weekly mortgage apps; new home sales; weekly oil inventories; 5-yr note auction; FOMC interest rate decision; Galleon hearing; Earnings from Nike and Bed Bath & Beyond
THURSDAY: Durable goods orders; weekly jobless claims; 7-yr note auction; iPhone 4 on sale; Yahoo shareholders meeting; Earnings from Lennar, Oracle and Research In Motion
FRIDAY: Final read on Q1 GDP; corporate profits; consumer sentiment; XTO shareholders meeting on Exxon buyout
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