Stocks slide as home sales drop

The Russell 2000 (NYSE: IWM) has slipped into negative territory and the Dow Jones Industrial Average (INDU) is flat following on news of an unexpected drop in June U.S. home sales.

At 10:44 a.m. ET the Russell 2000 had lost 2.26 points, or 0.28%, to 809.60. The Dow had added 21.30 points, or 0.16%, to 13,738.25.

Sales of existing homes fell more than expected in June but prices rose modestly, the National Association of Realtors reported at 10 a.m. ET.

Total existing home sales fell 3.8% to a seasonally adjusted annual rate of 5.75 million, below the expected rate of 5.87 million units. Tighter lending standards as a result of the subprime meltdown are partly to blame for buyers remaining hesitant about purchasing a new home.

But there might be light at the end of the tunnel.

The median home price added 0.3%, while housing inventories fell by 4.2%.

The bulls took to the stage as soon as the opening bell rang following a report by Boeing Co. (NYSE: BA) that it soared to a second-quarter profit of $1.1 billion, compared with a loss a year earlier. Online retailer Amazon.com, Inc. (Nasdaq: AMZN) also contributed, announcing before the close on Tuesday that second-quarter profit more than tripled.

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