Stocks drop after weaker reports on jobs, housing; Pending home sales fall to record low

Stocks extend slide after pending home sales drop

NEW YORK — Stocks are extending their slide after home sales fell to a record low in May following the expiration of a tax credit.

Stocks were already lower Thursday following another disappointing report on jobs.

The National Association of Realtors says the number of buyers who signed contracts to purchase homes dropped to a new low in May following a rush of purchases to meet an April 30 tax credit deadline.

Stocks had opened lower after initial claims for jobless benefits rose unexpectedly last week. The Labor Department issues its monthly jobs report Friday.

The Dow Jones industrial average is down 50 at 9,724. The Standard & Poor’s 500 index is down 6 at 1,025, while the Nasdaq composite index is down 14 at 2,095.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stocks slipped Thursday following a second straight disappointing report on the labor market.

The third quarter began on a disappointing note after the government said initial jobless claims rose last week to 472,000. Economists had forecast claims would fall.

The news on weekly claims comes a day before the government’s big monthly employment report. And, it comes just a day after payroll company ADP said private employers didn’t ramp up hiring as much as expected last month.

Initial claims have remained well above the levels economists believe would indicate strong jobs growth. Employers are still nervous about the pace of the recovery.

In early trading, the Dow Jones industrial average fell 30.38, or 0.3 percent, to 9,746.21. The broader Standard & Poor’s 500 index fell 2.93, or 0.3 percent, to 1,027.78, and the Nasdaq composite index fell 6.23, or 0.3 percent, to 2,103.01.