Emily Chasan
Stocks fell on Thursday as weak home sales data renewed worries about the strength of the U.S. economy, offsetting optimism about strong earnings reports from companies, such as eBay Inc. (Nasdaq:EBAY - news).
The Dow industrials closed at a record high on Wednesday, buoyed by optimism about stronger-than-expected earnings.
But a report on Thursday showed sales of previously owned U.S. homes took their biggest tumble in 17 years in December and emphasized expectations that a weaker economy will slow corporate profit growth.
"Questions remain as to what comes next for the economy," said Joseph Battipaglia, chief investment officer for Ryan, Beck & Co. in Philadelphia. "Corporate profits are coming in well, but they are certainly at a more contained pace than we've seen heretofore and the housing numbers were not good, which perpetuates the idea that there is weakness in the consumer side of the equation."
The Dow Jones industrial average (^DJI - news) was down 48.31 points, or 0.38 percent, at 12,573.46. The Standard & Poor's 500 Index (^SPX - news) was down 7.68 points, or 0.53 percent, at 1,432.45. The Nasdaq Composite Index (^IXIC - news) was down 16.59 points, or 0.67 percent, at 2,449.69.
Pressuring the Dow, shares of American International Group Inc. (NYSE:AIG - news) fell 1.4 percent to $68.92 after the world's largest insurer said it wants to buy the outstanding 38.1 percent of 21st Century Insurance Group (NYSE:TW - news) that it doesn't already own.
Shares of 21st Century surged 26.9 percent to $21.05 and ranked as the NYSE's biggest percentage gainer.
Shares of eBay jumped 8.3 percent to $32.49 on Nasdaq, a day after the online marketplace reported earnings that topped Wall Street's expectations.
St. Jude Medical Inc. (NYSE:STJ - news) shares advanced 4.5 percent to $41.45 on the NYSE after the maker of artificial heart valves and implantable defibrillators said quarterly net earnings rose from a year ago.
Shares of Exxon Mobil Corp.(NYSE:XOM - news) were the heaviest weight on the S&P 500 as crude oil for March delivery fell 72 cents to $54.65 a barrel. Exxon Mobil's shares dropped 1.2 percent at $73.99 and also dragged on the Dow.
The Dow industrials closed at a record high on Wednesday, buoyed by optimism about stronger-than-expected earnings.
But a report on Thursday showed sales of previously owned U.S. homes took their biggest tumble in 17 years in December and emphasized expectations that a weaker economy will slow corporate profit growth.
"Questions remain as to what comes next for the economy," said Joseph Battipaglia, chief investment officer for Ryan, Beck & Co. in Philadelphia. "Corporate profits are coming in well, but they are certainly at a more contained pace than we've seen heretofore and the housing numbers were not good, which perpetuates the idea that there is weakness in the consumer side of the equation."
The Dow Jones industrial average (^DJI - news) was down 48.31 points, or 0.38 percent, at 12,573.46. The Standard & Poor's 500 Index (^SPX - news) was down 7.68 points, or 0.53 percent, at 1,432.45. The Nasdaq Composite Index (^IXIC - news) was down 16.59 points, or 0.67 percent, at 2,449.69.
Pressuring the Dow, shares of American International Group Inc. (NYSE:AIG - news) fell 1.4 percent to $68.92 after the world's largest insurer said it wants to buy the outstanding 38.1 percent of 21st Century Insurance Group (NYSE:TW - news) that it doesn't already own.
Shares of 21st Century surged 26.9 percent to $21.05 and ranked as the NYSE's biggest percentage gainer.
Shares of eBay jumped 8.3 percent to $32.49 on Nasdaq, a day after the online marketplace reported earnings that topped Wall Street's expectations.
St. Jude Medical Inc. (NYSE:STJ - news) shares advanced 4.5 percent to $41.45 on the NYSE after the maker of artificial heart valves and implantable defibrillators said quarterly net earnings rose from a year ago.
Shares of Exxon Mobil Corp.(NYSE:XOM - news) were the heaviest weight on the S&P 500 as crude oil for March delivery fell 72 cents to $54.65 a barrel. Exxon Mobil's shares dropped 1.2 percent at $73.99 and also dragged on the Dow.
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