August Home Sales Numbers Bring Down the Dow
Existing-home sales posted an unexpected 2.7% decline in August, to a 5.1 million-unit annual rate, the first reversal after four months of gains. The Dow Jones is now down 40 points on the news and the S&P 500 is down 8 points.
Economists polled by Thomson Reuters (TRI) had expected a gain of 2.1% and an annual rate of 5.35 million, up from 5.24 million in July. The real estate group said the sales pace of existing homes, which includes single-family units, townhomes, condominiums, and co-ops, is still 3.4% above the rate of a year ago.
"The data are weaker than expected, and suggest the recovery in housing will be very slow," said Standard & Poor's Chief Economist David Wyss.
Stocks are heading down on the news, here's a quick video recap of the story: