Housing Data Shake U.S. Stocks

Among financials, National City(NCC Quote) said it swung to a $1.8 billion loss thanks to an increase in loan-loss reserves and $1.1 billion in writedowns.

Outside earnings, The Wall Street Journal reported that Kevin Johnson, head of Microsoft's (MSFT Quote) Windows and online services segments, will leave the company for Juniper Networks (JNPR Quote).

In pursuit of a merger, XM Satellite Radio (XMSR Quote) and Sirius (SIRI Quote) said they will pay a $19.7 million penalty to settle Federal Communications Commission rules violations, a move that may push the deal forward.

Moving over to commodities, crude oil was down 20 cents to $124.24 a barrel after falling nearly $7 over the past two days. Gold was losing $2.10 to $920.70.

Treasuries were edging higher. The 10-year note was up 14/32 in price to yield 4.07%, and the 30-year was adding 22/32, yielding 4.63%. The dollar was slightly lower against the euro and yen but strengthening vs. the pound.

Overseas, European exchanges were mostly trading downward. The FTSE in London and the DAX in Frankfurt were both weaker. In Asia, Japan's Nikkei gained, while Hong Kong's Hang Seng declined.