NEW YORK - Stocks fell for a second straight session Thursday after warnings from three homebuilders increased investors' concerns about an economic slowdown. Another drop in oil prices failed to lift the market from its gloom.
Wall Street, already armed with recent economic data pointing to a housing slowdown, was forced to digest sour anecdotal evidence as well. Beazer Homes USA Inc., Hovnanian Enterprises Inc. and KB Home warned that the home-building sector is facing difficulties including cancellations and spikes in inventories.
"It seems to me that the market is trading lower on the fears that maybe the economy is perhaps have a hard landing versus and a soft landing," said Jim Herrick, head of equity trading at Robert W. Baird & Co. He contends the mounting news about a housing slowdown has spooked investors because of the major role the robust housing market played in driving economic growth in recent years.
The major indexes, which all showed declines Wednesday, gave up further ground Thursday. The Nasdaq composite index on Wednesday posted its largest single-day point drop in more than a month amid concerns of rising labor costs and slowing growth in some of the nation's regions.
In late morning trading, the Nasdaq fell 8.64, or 0.40 percent, to 2,159.20.
The Dow Jones industrial average fell 57.95, or 0.51 percent, to 11,348.25, and the Standard & Poor's 500 index was off 5.74, or 0.44 percent, at 1,294.52.
Bonds were unchanged, with the yield on the benchmark 10-year Treasury note flat with the 4.80 percent seen late Wednesday. The yield hit a five-month low of 4.73 percent Friday. The dollar was mixed compared with most major currencies, while gold fell.
Declining issues outnumbered advancers by roughly 3 to 1 on the
New York Stock Exchange, where volume came to 422.8 million shares, compared with 416.7 million traded at the same point Wednesday.
The Russell 2000 index of smaller companies was down 4.00, or 0.56 percent, to 708.04.
Oil prices fell Thursday after inventory figures showed refining capacity was helping add to U.S. gasoline and distillate inventories. Crude prices, which had recently been above $70 a barrel, had already fallen as tensions over
Iran's nuclear ambitions eased and due to a lighter-than-expected hurricane season and news that a Gulf of Mexico platform is producing more than before it was struck by Hurricane Katrina. Also, demand was expected to ease as the summer driving season ended. Oil was down 20 cents at $67.30 a barrel.
Wall Street, already armed with recent economic data pointing to a housing slowdown, was forced to digest sour anecdotal evidence as well. Beazer Homes USA Inc., Hovnanian Enterprises Inc. and KB Home warned that the home-building sector is facing difficulties including cancellations and spikes in inventories.
"It seems to me that the market is trading lower on the fears that maybe the economy is perhaps have a hard landing versus and a soft landing," said Jim Herrick, head of equity trading at Robert W. Baird & Co. He contends the mounting news about a housing slowdown has spooked investors because of the major role the robust housing market played in driving economic growth in recent years.
The major indexes, which all showed declines Wednesday, gave up further ground Thursday. The Nasdaq composite index on Wednesday posted its largest single-day point drop in more than a month amid concerns of rising labor costs and slowing growth in some of the nation's regions.
In late morning trading, the Nasdaq fell 8.64, or 0.40 percent, to 2,159.20.
The Dow Jones industrial average fell 57.95, or 0.51 percent, to 11,348.25, and the Standard & Poor's 500 index was off 5.74, or 0.44 percent, at 1,294.52.
Bonds were unchanged, with the yield on the benchmark 10-year Treasury note flat with the 4.80 percent seen late Wednesday. The yield hit a five-month low of 4.73 percent Friday. The dollar was mixed compared with most major currencies, while gold fell.
Declining issues outnumbered advancers by roughly 3 to 1 on the
New York Stock Exchange, where volume came to 422.8 million shares, compared with 416.7 million traded at the same point Wednesday.
The Russell 2000 index of smaller companies was down 4.00, or 0.56 percent, to 708.04.
Oil prices fell Thursday after inventory figures showed refining capacity was helping add to U.S. gasoline and distillate inventories. Crude prices, which had recently been above $70 a barrel, had already fallen as tensions over
Iran's nuclear ambitions eased and due to a lighter-than-expected hurricane season and news that a Gulf of Mexico platform is producing more than before it was struck by Hurricane Katrina. Also, demand was expected to ease as the summer driving season ended. Oil was down 20 cents at $67.30 a barrel.
