Stocks fell Tuesday in light trading as the market moves toward the end of a terrible year. The market had fallen most of the session, but losses accelerated in late-afternoon trading. The pessimistic tone of Tuesday's session was set early by a series of U.S. economic reports on gross domestic product (GDP), housing, and consumer sentiment. The Commerce Department said before the market opened that third-quarter GDP shrank at a 0.5 percent annual rate. It was the third revision for GDP in the July-September period, and the decline was in line with economists' projections. The National Association of Realtors said sales of existing homes fell 8.6 percent in November to an annual rate of 4.49 million units. The month's sales were down more than 10 percent from a year ago and were weaker than economists had expected. Separately, the U.S. Census Bureau said sales of existing homes fell 2.9 percent last month to an annual rate of 407,000 units. The reading was worse than economists had predicted. The University of Michigan's consumer-sentiment index rose unexpectedly in December from the previous month, though it is still at a very low level. The economic reports suggested that the U.S. recession may be worse than originally thought, and caused light sweet crude oil for February delivery fell 93 cents to $38.98 a barrel on the New York Mercantile Exchange. The U.S. dollar fell versus the euro and the yen. The Dow Jones industrial average fell 100.12, or 1.2 percent, to 8,419.65. American Express said it has received preliminary approval for a $3.9 billion government rescue investment, but despite the news, shares of the credit-card company fell 2.5 percent. Automakers remained under pressure as investors looked beyond the short-term government loans. Shares of General Motors fell almost 14 percent. The broader Standard & Poor's 500 index fell 8.47, or 1 percent, to 863.16. The technology-heavy Nasdaq composite index fell 10.81, or 0.7 percent, to 1,521.54. The New York Stock Exchange composite index fell 52.54 to 5,468.28. The American Stock Exchange composite index rose 10.27 to 1,339.37. And the Russell 2000 index fell 6.43 to 468.64.
