Stocks fell sharply on Wednesday after data showed sales of new single-family homes tumbled more than expected to a record low in May.

The Dow Jones industrial average <.DJI> dropped 58.34 points, or 0.57 percent, to 10,235.18. The Standard & Poor's 500 Index <.SPX> dropped 9.58 points, or 0.87 percent, to 1,085.73. The Nasdaq Composite Index <.IXIC> dropped 22.82 points, or 1.01 percent, to 2,238.98.

The S&P home builders ETF and the Morgan Stanley housing index <.HGX> both fell about 1 percent.

The Commerce Department said new home sales dropped a record 32.7 percent to a 300,000 unit annual rate, the lowest level since record keeping started in 1963.

(Editing by Jeffrey Benkoe)

Morgan Stanley