RTTNews - After seeing some initial strength, stocks have turned lower over the course of morning trading on Tuesday. The major averages have all pulled back into negative territory, as traders react negatively to the latest housing data.
While the National Association of Realtors released a report showing that existing home sales increased for the second consecutive month in May, the sales growth came in below economist estimates.
The report showed that existing home sales rose 2.4 percent to an annual rate of 4.77 million units in May from a revised 4.66 million units in April. Economists had expected sales to rise 3 percent to 4.82 million units from the 4.68 million units originally reported for the previous month.
Boeing (BA) has helped to drag the Dow below the unchanged line after the aerospace giant announced that it has once again delayed the first test flight of its 787 Dreamliner due to a need to reinforce part of the aircraft. Shares of Boeing are currently down 8.1 percent.
Additionally, shares of Rambus (RMBS) are down 12.8 percent mid-morning trading after the memory chip maker lowered its second quarter revenue guidance, citing the impact of the spiraling economy and its effect on the sales of semiconductors and consumer electronic systems.
In other news, Anglo American rejected Swiss mining company Xstrata's proposal for a $68 billion merger of equals on the grounds that the merger was unattractive to its shareholders.
Meanwhile, enterprise software giant Oracle (ORCL), specialty chemical producer H.B Fuller (FUL) and electronic manufacturing services provider Jabil Circuit (JBL) are all scheduled to report their quarterly earnings results after the markets close for the day.
The major indices have seen some further downside in recent trading, pulling back to new lows for the session. The Dow is currently down 33.18 at 8,305.83, the Nasdaq is down 8.84 at 1,757.35 and the S&P 500 is down 2.08 at 890.96.
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