U.S. Stocks Drop a Second Day on Korea Clash, European Crisis
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U.S. stocks dropped for a second day after fighting broke out among North and South Korea and concern grew that Europe’s debt crisis and China’s efforts to tame inflation will slow the global economic rebound.
PulteGroup Inc. and D.R. Horton Inc., the two largest U.S. homebuilders, slumped at least 3.4 percent after a report showed existing home sales trailed estimates. Adobe Systems Inc. slipped 3.4 percent after Morgan Stanley said analysts’ estimates for the first half of fiscal 2011 may be too high. Brocade Communications Systems Inc. tumbled 10 percent as the biggest maker of switches for data-storage networks forecast earnings that missed analysts’ predictions.