Updated from 4:12 p.m. EDTStocks sank further Monday, with the S&P 500 making a new low for the year, despite a positive report on home sales, some healthy earnings news and a flurry of acquisition activity on the opening day of the Democratic National Convention in Boston. The S&P hit its lowest close of the year, down 2.13 points, or 0.2%, to 1084.07. Meanwhile, the Nasdaq Composite sank to a new low for the third time in four sessions, closing down 10.07 points, or 0.54%, to 1839.02. Earlier, it reached a new intraday low for the year at 1829. The Dow Jones Industrial Average ended down by a fraction at 9961.92, after dropping as low as 9914 during the session. In other markets, the 10-year Treasury note was down 11/32 to yield 4.48%, while the dollar was weaker against the euro and the yen. In New York, oil futures closed down 27 cents, or 0.6%, closing at $41.35 a barrel. Volume stayed relatively high, with more than 1.4 billion shares trading on the New York Stock Exchange and more than 1.6 billion changed hands on the Nasdaq. Decliners held about a 2-to-1 majority on both exchanges. "There is such a pronounced concern about earnings going forward, that it has really overshadowed the positive earnings quarter that we've seen," said Barry Hyman, equity market strategist with Ehrenkrantz King Nussbaum. "The market needs a dose of good medicine. Just because we're breaking out of our trading range to the downside doesn't mean we're in a bear market. We're looking at decent earnings support, and valuations are becoming more interesting by the day." Hyman has his sights set on Friday's advance GDP report as a possible catalyst for a turnaround. "Everyone's concerned about a slowdown in the economy," he said, referring to the surprise downward revision of the first quarter's GDP figure in June, from 4.4% to 3.9%. "That caught everyone by surprise. Now, we're looking for some good news to turn the tide somehow." On Friday, economists expect the government to say the economy expanded at a rate of 3.7% in the second quarter, down from 3.9%. Existing-home sales jumped unexpectedly in June to an annualized 6.95 million, a record high, from a revised 6.81 million in May, according to the National Association of Realtors. Economists had expected sales to dip to 6.65 million. While homebuyers continue to take advantage of low mortgage rates, speculation persists on Wall Street about what rising interest rates might mean for the red-hot real estate market that has been one constant bright spot in the embattled economy of the last few years. The Democratic Party, its supporters, a slew of media types, and bands of protesters gathered amid tight security in Boston for the first day of the convention, leading up to a November election that remains a dead-heat in the polls and a big question mark for investors. The presumed nominee, Sen. John Kerry, will attempt to introduce and define himself to the American public in his bid to unseat the incumbent, President Bush. Market watchers say uncertainty about the election remains a major drag on the markets, since policy direction, from tax cuts to fighting terrorism, is believed to be at stake.