NEW YORK — Wall Street pared steep losses Monday to end narrowly mixed after a surprise drop in new home sales for February triggered further concern that economic growth is slowing more than expected.
The Commerce Department reported that sales of new single-family homes fell by 3.9 percent last month to a seasonally adjusted annual rate of 848,000. It was the slowest sales pace in nearly seven years and dimmed hopes for a rebound in the troubled housing market.
Economists have been watching the housing industry for a hint about where the economy is heading. The disappointing data come amid continued concern about the subprime mortgage market, which has been slammed by an increase in delinquencies in recent months.
The housing report data took a chunk out of last week's 370 point gain on the Dow Jones industrial average, its best weekly point rise in four years. According to preliminary calculations, the benchmark index fell 11.94, or 0.10 percent, to 12,469.07. The Dow fell by as much as 112 points earlier in the session.
"Investors are looking to figure out how things are going to shake out after a big move higher last week," said Mike Malone, a trading analyst at Cowen & Co. "Given the magnitude of the move higher we had last week, I don't find this to be overly surprising. I think you're seeing some profit taking."
Broader stock indicators were slightly higher. The Standard & Poor's 500 index fell 1.39, or 0.10 percent, to 1,437.50, and the Nasdaq composite index dropped 6.70, or 0.27 percent, to 2,455.63.
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