U.S. stocks fell to their lowest level in seven weeks, on Tuesday, as an unexpectedly large drop in home sales ratcheted up concerns that the economic recovery is even weaker than had been feared. The Dow and S&P 500 racked up their fourth day of losses in a row after an industry group reported that sales of U.S. existing homes in July fell to their slowest pace in 15 years. With housing a linchpin of the U.S. consumer economy, the latest data cast doubt on the pace of recovery and added fuel to investors' recent search for safety. So the Dow Jones industrial average fell 134 points, or 1.3 percent, to 10,040. The Standard & Poor's 500 Index shed 15 points, or 1.5 percent, to 1,052. And the Nasdaq Composite Index lost 36 points, or 1.7 percent, to 2,124. Prices of U.S. Treasuries soared, sending two-year yields to another record low. A report that at least seven of the 17 top Federal Reserve officials at the U.S. central bank's August policy meeting had reservations about the decision to buy more Treasuries also rattled investors. Medical device maker Medtronic Inc. plunged 10.8 percent after it reported a decline in quarterly sales and cut its outlook.
News On AIR | August 25, 2010 5:50 PM
<br/><br/>U.S. stocks fall to lowest level in seven weeks