Previous 5.37 million revised to 5.26. The chart says it all: lowest sales since May 1995, months supply largest since 1999.
In my book, today was a very significant and important bearish day. Following the recent 90% down day, the stock market did not have the strength to rally the usual 2 to 7 days – Richard Russell Dow Theory Letters
US Stocks Tumble After Existing Home Sales Drop Sharply
U.S. stocks tumbled after a report on home sales last month came in much worse than expected, falling to its lowest level in 15 years, sending an already down market reeling Tuesday.
The Dow Jones Industrial Average fell 147 points, or 1.4%, to 10027 after the data, when it had been down about 115 points heading into the release. It briefly dipped below 10000 and all 30 of its components remained in the red. The Standard & Poor’s 500 index declined 1.6% to 1050 while the Nasdaq Composite fell 1.7% to 2122.
The yield on the 10-year Treasury fell to 2.47%.
Investors have grown more and more fearful with every bit of disappointing data that economy could be headed for more trouble. The market had already priced in low expectations for the housing data Tuesday morning, before falling further when it was even worse than thought.
Home resales dropped a record 27.2%–nearly twice as much as analysts had expected–to an annual rate of 3.83 million in July, the National Association of Realtors said Tuesday. Meanwhile, inventories rose to 12.5 months from 8.9 months in June, pressuring already depressed home prices. Inventories are at their highest level in more than a decade.
Economists surveyed by Dow Jones Newswires had expected existing home sales to fall by 14.3% to an annual rate of 4.6 million.
-By David Benoit, Dow Jones Newswires; 212-416-2458; email@example.com