* Dollar Tree offers to buy Family Dollar; deal valued at
* June pending home sales unexpectedly fall
* S&P 500 about 1 percent from intraday record
* Dow off 0.2 pct; S&P 500 down 0.2 pct;, Nasdaq off 0.4 pct
(Updates to midday)
By Ryan Vlastelica
NEW YORK, July 28 U.S. stocks slipped on Monday
as weak data on the housing market and services sector gave the
latest indications that economic conditions were getting worse,
taking the S&P 500 below a key support level.
While acquisition activity limited the market's decline and
kept the Dow and S&P 500 near record levels, investors found few
reasons to buy because the data followed some high-profile
disappointments in earnings, including from Amazon.com
and Caterpillar last week.
An index of pending home sales unexpectedly fell 1.1 percent
in June, according to the National Association of Realtors. The
report followed a drop of 8.1 percent in June new home sales,
the biggest slump in almost a year. The PHLX housing sector
index slid 1.8 percent. Shares of D.R. Horton Inc
, the No. 1 U.S. homebuilder, tumbled 2.9 percent to
Activity in the U.S. services sector stayed at its highest
level in 4-1/2 years in July, though readings for new business
and employment growth weakened, according to financial data firm
Markit's preliminary data.
"This isn't the first soft data point we've gotten on
housing recently, which suggests the sector is decelerating, a
real discouragement," said Liam Dalton, president of Axiom
Capital Management Inc in New York. "The data suggests it is
time to be cautious over the idea of a robust economy."
Later this week, data on second-quarter U.S. gross domestic
product and the July nonfarm payrolls report will be released.
The Dow Jones industrial average fell 28.1 points or
0.17 percent, to 16,932.47. The S&P 500 lost 4.14 points
or 0.21 percent, to 1,974.20. The Nasdaq Composite
dropped 16.90 points or 0.38 percent, to 4,432.66.
With the day's move, the S&P 500 fell below its 14-day
moving average, a level that had served as support on Friday.
The benchmark index remains less than 1 percent away from an
all-time record reached last week.
In the latest deal news, Dollar Tree Inc offered to
buy rival Family Dollar Stores Inc in a transaction that
valued the acquired company's assets at about $9.2 billion.
Zillow Inc agreed to buy Trulia Inc for $3.5
billion in stock in a deal that would combine the two most
popular U.S. real estate website operators.
Family Dollar's stock jumped 23.8 percent to $75.11 and
ranked as the S&P 500's biggest percentage gainer while Dollar
Tree gained 3.1 percent to $55.92. Trulia added 13.4 percent to
$63.88 while Zillow fell 2.1 percent to $155.56.
Cummins Inc, the U.S. maker of engines and other
vehicle components, raised its full-year revenue outlook, citing
improved North American demand; still, its stock dropped 3.6
percent to $144.73.
El Pollo Loco Holdings Inc, a restaurant chain that
went public late last week, extended the rally from its trading
debut on Friday. The stock surged 22.8 percent to $29.50.
(Editing by Jan Paschal)