Stocks fell for a fourth straight session Tuesday, ending at their lowest levels in seven weeks, after a dismal report on existing home sales stoked worries about the economic recovery. But several homebuilders finished higher amid some buzz that now might be a good time to get into the sector.
The Dow Jones Industrial Average lost over 130 points, or 1.3 percent, led by Boeing , Alcoa and Caterpillar .
The Dow has now lost 3.6 percent in the past four sessions.
The S&P 500 and Nasdaq also shed about 1.3 percent today. The S&P 500 is near short-term oversold levels, according to the 14-day relative strength index, which dipped near the 30 level. The CBOE volatility index, widely considered the best gauge of fear in the market, was above 27.
Existing-home sales fell 27.2 percentin July to an annual rate of 3.83 million units, their lowest pace in 15 years. The prior month was revised lower to show a 5.26 million-unit pace.
The market's decline had initially accelerated amid disappointment in the housing report but soon snapped back as some pockets of gains began to emerge, most notably, in housing stocks.
Housing got a boost after several brokerages, including Citigroup, suggested now might be a good time to get into the sector.
The sector finished mixed, with KB Home and Lennar finishing higher.
But not everyone was convinced.Page 1 of 5 | Next Page