US stocks edged lower on Friday as weaker-than-expected data on new home sales reinforced worries about the housing and mortgage markets. Shares of home builders were down, and the Dow Jones home construction index fell 2.7 percent. An S&P index of financial stocks was down 0.7 percent.
Stocks started the day in positive territory, but quickly cut gains and eventually turned negative after a government report showed US new home sales fell much more than expected in November, to the slowest sales pace in 12 years.
Shares of MBIA Inc and other bond insurers fell on news that billionaire investor Warren Buffett is starting up a rival bond insurer that aims to make it cheaper for cities and states to borrow.
The Dow Jones industrial average was down 51.38 points, or 0.39 percent, at 13,308.15. The Standard & Poor's 500 Index was down 3.95 points, or 0.27 percent, at 1,472.42. The Nasdaq Composite Index was down 10.24 points, or 0.38 percent, at 2,666.55. Trading volume remained well below normal levels, however, because of the holidays.
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