Wall Street falters after home sales data
Stocks were little changed on Tuesday after data showed sales of previously owned U.S. homes fell unexpectedly in May.
Home sales fell 2.2 percent month over month, defying expectations for a 5.5 percent gain. Sales were expected to rise because of a June 30 deadline for home owners to close contracts to receive a tax credit.
It was generally expected that sales would be up given earlier contract signings because of the tax credit, so it is a little surprising, said Paul Kasriel, senior vice president at Northern Trust in Chicago.
It's going to be a two step forward, one step backward housing recovery.
Shares of Walgreen Co slid 6 percent to $28.33 after the drugstore chain reported a weaker-than-expected profit as sales of nonprescription items disappointed.
The Dow Jones industrial average <.DJI> dipped 11.34 points, or 0.11 percent, to 10,431.07. The Standard & Poor's 500 Index <.SPX> was off 2.45 points, or 0.22 percent, to 1,110.75. The Nasdaq Composite Index <.IXIC> added 2.26 points, or 0.10 percent, to 2,291.35.
The Nasdaq fared better than the other two main indexes, boosted by shares of chipmakers. Sandisk Corp rose 0.3 percent to $48.18.
The Federal Reserve's rate-setting committee was also starting a two-day meeting, with a statement to be released on Wednesday. Investors will watch for any minor changes in language that could illustrate the central bank's outlook on the economy.
(Additional reporting by Ryan Vlastelica; Editing by Padraic Cassidy)
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