Stock Market Hit by a Sharp Decline in New Home Sales in November

According to the Commerce Department, new home sales in the US hit a new seven-month low in November. Sales dropped 11.3% to 355,000, marking the biggest decline since January. The analysts polled by Reuters had expected sales to increase marginally from the October levels to a 440,000 annual pace.

The November data marks a setback for the housing market, which was showing strong signs of stabilization after a prolonged slump. The weak sales report has sent the stock market into the red, with Dow Jones losing 0.21% to 10,443.31 and S&P shedding 0.16% to 1,116.22.

The shares of SPDR S&P Homebuilders (NYSE: XHB), which seeks to replicate the S&P Homebuilders Select Industry Index, has fallen by 0.78% to $15.31.

Meanwhile, Pulte Homes Inc (NYSE: PHM) shares are fast shedding their early morning gains to trade at $10.00.