Dow Dips on Monday Overreach

A rough housing report doesn’t help
By Jonas Oransky,  Newser Staff
Posted Oct 2, 2007 3:53 PM CDT
Traders give each other a high five on the floor of the New York Stock Exchange shortly after the closing bell, Monday, Oct. 1, 2007 in New York. Wall Street began the fourth quarter with a huge rally...   (Associated Press)
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(Newser) – The market was mostly down today, after investors corrected for yesterday’s record-breaking spike, and a new drop in a home-sales index stirred mortgage anxieties. The Dow dipped 40.24 points to 14,047.31, with one strategist telling MarketWatch, “The fundamental news didn’t warrant the rally.” Still, the reaction was muted, given news of a 6.5% slide last month in the pending home sales index, which hit its lowest mark since it was first tallied in 2001.

Meanwhile, GM posted better-than-expected September sales gains even as rivals Ford and Toyota saw declines; GM shares led Dow advancers, jumping 2.9% on the success. The Nasdaq was up 6.12 to close at 2,747.11 while the S&P was off 0.41 to 1,546.63.