U.S. stocks edged lower in morning trading Monday as investors weighed the implications of a steep drop in U.S. home sales and the latest batch of corporate deal news. The market is coming off an all-time high reached last week.
KEEPING SCORE: The Dow Jones industrial average lost 43 points, or 0.2 percent, to 18,095 as of 11:10 a.m. Eastern. The Standard & Poor’s 500 index lost three points, or 0.2 percent, to 2,106. The Nasdaq composite was down seven points, or 0.2 percent, to 4,948.
HOMES SALES PLUNGE: The National Association of Realtors reported that sales of previously occupied homes tumbled 4.9 percent last month to a seasonally adjusted annual rate of 4.82 million. That brings sales down to their lowest level since last April. Weak sales last year set up expectations of a strong rebound this year, yet signs of that resurgence have yet to appear. Homebuilder shares slumped on the news. Century Communities declined the most, shedding 50 cents, or 2.7 percent, to $17.88.
THE QUOTE: “The home numbers are a little disappointing,” said Bob Doll, chief equity strategist at Nuveen Asset Management.
SECTOR WATCH: Seven of the 10 sectors in the S&P 500 fell, with telecommunications services stocks notching the biggest decline. Health care stocks led the gainers.