Stocks lost ground this afternoon, adding to yesterday’s losses, after mixed economic reports that raised concerns about consumer spending.
The Dow Jones industrial average closed down 1.3 percent, or 107 points, while the broader Standard & Poor’s 500-stock index lost 1.3 percent, or 12 points. The tech-heavy Nasdaq was down 1.1 percent, or 20 points.
Stocks have rallied more than 30 percent since reaching a low in March, helping the Dow close in positive territory last week. But investors sold off yesterday, sending the major indexes down more than 2 percent.
Investors initially cheered a better-than-expected housing report this morning with modest gains. The construction of new homes and apartments jumped 17.2 percent last month to a seasonally adjusted annual rate of 532,000 units, according to the Commerce Department. That was better than analysts expected and, in another good sign, applications for building permits were up 4 percent. An increase in permits is often an indicator of future construction activity.
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