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U.S. stocks drop on U.S. data, small-cap rout; Dow falls 0.62%

Published 09/22/2014, 04:47 PM
Updated 09/22/2014, 04:53 PM
U.S. stocks drop on soft existing home sales numbers

Investing.com - U.S. stocks fell on Monday after existing U.S. home sales numbers disappointed investors, while a selloff in small-cap stocks sent broader indices falling as well.

At the close of U.S. trading, the Dow 30 fell 0.62%, the S&P 500 index fell 0.80%, while the NASDAQ Composite index fell 1.14%.

The Volatility S&P 500 index, which measures the outlook for market volatility, was up 13.05% at 13.69.

The National Association of Realtors reported earlier that existing home sales in the U.S. unexpectedly fell 1.8% to an annual unit rate of 5.05 million in August. Analysts had expected existing home sales to rise 1% to 5.20 million units.

The numbers sent U.S. stock prices falling on Monday in a selloff led by plunging small-cap stocks, which investors viewed as underperforming.

Elsewhere, stocks took a hit after China ruled out implementing more stimulus programs to shore up its economy.

Soft economic indicators in the world's second-largest economy had many betting China would unveil fresh stimulus measures to boost growth.

In company news, Apple Inc (NASDAQ:AAPL) stocks applauded reports its new iPhone saw sales top 10 million over the weekend.

Elsewhere, Bank of America Merrill Lynch and Sanford Bernstein downgraded Yahoo! Inc (NASDAQ:YHOO) after Chinese e-commerce giant Alibaba Group Holdings Ltd (NYSE:BABA) went public on Friday, while Germany's Siemens said it would buy oilfield-equipment maker Dresser-Rand Group Inc (NYSE:DRC) Group for $7.6 billion.

Apple owns 23% of Alibaba.

Leading Dow Jones Industrial Average performers included Coca-Cola Enterprises Inc (NYSE:CCE), up 0.46%, Procter & Gamble Company (NYSE:PG), up 0.41%, and Dupont Fabros Technology Inc (NYSE:DFT), up 0.34%.

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The Dow Jones Industrial Average's worst performers included United Technologies Corporation (NYSE:UTX), down 1.80%, Caterpillar Inc (NYSE:CAT), down 1.57%, and Walt Disney, down 1.32%.

European indices, meanwhile, ended the day lower.

After the close of European trade, the Euro Stoxx 50 fell 0.51%, France's CAC 40 fell 0.42%, while Germany's DAX 30 fell 0.51%. Meanwhile, in the U.K. the FTSE 100 fell 0.94%.

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