Housing data pull Wall Street down
Joe Bel Bruno, Associated Press
Published May 25, 2007 at midnight
NEW YORK - Wall Street retreated Thursday after housing data showed that sales surged in April by the largest amount in 14 years and dampened hopes that an interest rate cut would be needed to stimulate the economy.
Investors initially were enthusiastic after the Commerce Department reported sales of single-family homes rose 16.2 percent last month after falling slightly in March. Even though the report indicated that the economy continues to expand, investors became unnerved by a record drop in home prices.
The Dow Jones industrial average fell 84.52, or 0.62 percent, to 13,441.13. The shift in the direction of the Dow on Thursday was pronounced. The Dow rose nearly 100 points to 13,624.55 early in the session - eclipsing its trading high of 13,609.75 reached Wednesday - before pulling back.
The Standard & Poor's 500 index fell 14.77, or 0.97 percent, to 1,507.51, and the Nasdaq fell 39.13, or 1.52 percent, to 2,537.92.
Movers
+ Bausch & Lomb Inc., up $3.76, to $70.21; - Advanced Medical Optics Inc., down $1.34, to $41.10. Advanced Medical Optics confirmed that it launched a takeover bid for Bausch & Lomb. Last week, Bausch & Lomb agreed to be acquired by Warburg Pincus for about $3.67 billion.
- New York & Co., down $1.41, to $12.10. The women's apparel retailer lowered its fiscal-year earnings forecast, indicating it expects additional losses from its JasmineSola brand.
- Network Appliance Inc., down $6.30, to $31.76. The storage technology company reported that a slowdown in March will cause weaker-than-expected results for the second quarter.
- Komag Inc., down $4.36, to $23.18. The magnetic disk storage company warned that second-quarter revenue would fall below its forecast amid weaker sales volumes and lower selling prices.
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