Stocks Suffer Losses on Spain

U.S. stocks tumbled more than 1% on Wednesday, giving up the prior session’s gains, as risk-averse investors remain fixed on what’s next for Spain and Greece and a retreat in pending home sales erased any recent optimism about the euro zone’s outlook. The Dow Jones Industrial Average fell 160.83 points, or 1.28%, to 12,419.86. The S&P 500 dropped 19.10 points, or 1.43%, to 1,313.32. The Nasdaq Composite lost 33.63 points, or 1.17%, to 2,837.36.

Contracts to purchase previously owned U.S. homes unexpectedly fell in April to a four-month low. The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, fell 5.5 percent to 95.5, its lowest level since December, after a downwardly revised 3.8 percent increase in March.

Morgan Stanley (NYSE:MS) Chairman and Chief Executive James Gorman defended the securities firm’s role in Facebook Inc.’s (NASDAQ:FB) tumultuous initial public offering, telling employees internally that the firm worked “100% within the rules” and calling the steep decline in Facebook’s stock “disappointing.”

Research In Motion Ltd. extended its yearlong slide on Wednesday, as shares fell almost 8% after the company warned about a difficult competitive environment and said it had hired a pair of outside advisers to assess its business options.

Crude-oil futures dropped Wednesday to mark their lowest close since October. The July contract for light, sweet crude-oil futures (NMN:CLN2)  fell $2.94, or 3.2%, to settle at $87.82 a barrel on the New York Mercantile Exchange, after touching a low of $87.49.