New home sales sink 12.4 percent in July to slowest pace on record as economy weakens: Sales of new homes dropped sharply last month to the slowest pace on record, the latest sign that the economic recovery is fading.

Business spending slips amid cooling economy: Without the volatile transportation sector, orders dropped 3.8 percent — the steepest decline since January. Businesses spent less on equipment and machines. Orders for capital goods fell 8.0 percent.

Dow Falls Below 10,000 as Worries Escalate: Stocks opened lower for a fifth straight day Wednesday as disappointing reports on new home sales and durable-goods orders stoked worries about the economic recovery.