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US STOCKS-Wall St falls on euro zone fears, home prices

Published 11/30/2010, 10:44 AM
Updated 11/30/2010, 10:48 AM

* Euro hits 10-week low vs USD, dips below $1.30

* Monthly home prices fall more than expected-Case-Shiller

* Indexes down: Dow 0.3 pct, S&P 0.4 pct, Nasdaq 0.7 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to midmorning, adds quote, consumer confidence data)

By Rodrigo Campos

NEW YORK, Nov 30 (Reuters) - U.S. stock indexes fell on Tuesday on lingering worries that the euro zone debt crisis will spread and as data showed monthly home prices fell much faster than expected.

The euro slid to 10-week lows against the U.S. dollar, after a weekend rescue package for Ireland did little to stem fiscal concerns. The euro and stocks have been trading in sync with each other in recent weeks as European debt problems resurfaced, driving investors away from risky assets. For details, see [ID:nLDE6AT18Y]

"The idea of a contagion is being taken more seriously both in the European Union and how it might affect (U.S.) markets," said David Katz, principal & senior portfolio strategist at Weiser Capital Management LLC.

The Dow Jones industrial average <.DJI> dropped 33.38 points, or 0.30 percent, to 11,019.11. The Standard & Poor's 500 <.SPX> fell 5.05 points, or 0.43 percent, to 1,182.71. The Nasdaq Composite <.IXIC> lost 17.79 points, or 0.70 percent, to 2,507.43.

The latest S&P/Case-Shiller home prices data disappointed investors, as monthly prices fell more than expected in September, and prices from a year earlier rose more slowly than forecast. [ID:nNLLTME6O7]

The Dow Jones home construction index <.DJUSHB> edged up 0.3 percent after closing Monday at its lowest since July 2009.

But U.S. consumer confidence rose in November to its highest level in five months, helped by improving labor market conditions. [ID:nN30178922]

Global investors increased their exposure to equities in November despite weaknesses on many bourses, while U.S. and British fund managers stepped away from crisis-hit euro zone bonds, a Reuters poll found.

For details on Reuters' latest asset allocation poll, see [ID:nN29202856] [ID:nLDE6AT0HU] and [ID:nLDE69R0FD]
(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

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