U.S. stocks decline on fears about worsening debt crisis in the EU

U.S. stocks fell, as there are fears that the upcoming EU summit will not solve the problems of the debt crisis. Billionaire investor George Soros has urged Europe to create a fund for the purchase of Italian and Spanish bonds, and warned that it is necessary to resort to drastic measures if the EU leaders can not agree on the EU summit.

Signs of slowing growth and concern about the crisis in Europe caused a reduction of inventories by nearly 7.6%. The data showed that today, the demand for new homes the USA has more than forecast in May, as mortgage rates have fallen.

Sales of single-family housing rose in May to two years maximum. At the same time, house prices rose last year amid falling supply.

Ministry of Commerce announced that sales of the seasonally adjusted rose by 7.6% to 369,000 units on an annualized basis, showing the highest level since April 2010.

Compared with May of last year, sales of new homes rose by 19.8%.

The housing market is showing signs of recovery, despite the fact that the overall economy is weakening. According to this, it is expected that housing will affect the growth of GDP, and shows the first increase since 2005.

As part of DOW index all companies, except for one traded in the red. Most of all, lose Bank of America Corporation (BAC, -3,9%), Hewlett-Packard Company (HPQ, -2,9%), Intel Corporation (INTC, -2,9%) and Microsoft Corporation (MSFT, -2 , 77%)

Branches in the context of the S & P 500 all the sectors show a negative trend. Worst of all is the basic materials sector (-2.6%) and the financial sector (-2.2%). The smallest decline shows the housing sector (-0.6%).

Shares of Pfizer Inc (PFE) fell 1.36% to $ 22.42, while Bristol-Myers Squibb Company (BMY) fell by 4.09% to $ 33.92 as the company said it has completed all their research and will not be long feud to produce new products.

Shares of the largest social network Facebook Inc (FB) of the operator, reduced 3.54% to $ 31.88. The price of shares fell by 22% over the previous two weeks.

Quotes of Old Republic International Corp. (ORI) fell 8.52% to $ 8.48 after canceling a plan to allocate their mortgage guarantees, because the company lacked the capital.

Shares of Quest Software Inc (QSFT) rose 5.1% to $ 27.57. Software maker, which agreed to be bought by a group led by Insight Venture Partners, said that he had received an offer to buy shares at a price of $ 27.50 in cash.

The debt crisis in Europe is putting pressure on corporate earnings and global scale. Company Procter & Gamble Co (PG) and Danone (BN) have reduced their forecasts and claim a reduction in profits this year.