Stocks down on China-slowdown reports

Traders Luigi Muccitelli, left, and Edward Bauman confer on the... — Traders Luigi Muccitelli, left, and Edward Bauman confer on the floor of the New York Stock Exchange on Monday. U.S. stocks struggled Monday to extend the rally from their best week of the year. (March 19, 2012) Credit: AP

By THE ASSOCIATED PRESSMarch 20, 2012

Stocks closed lower Tuesday for only the second time in two weeks after two reports suggested an economic slowdown in China, where blistering growth over the past three years has helped sustain the global economic recovery.

Home prices dropped in 45 Chinese cities last month, a result of policies designed to reduce property speculation. And BHP Billiton, an Australian mining company, predicted China will not use much more iron ore in 2020 than today.

In the United States, stocks recovered some of their early loss but still closed lower. The Dow Jones industrial average declined 68.94 points to 13,170.19.

The Standard & Poor's 500 index lost 4.23 points at 1,405.52. The Nasdaq composite index dropped 4.17 points to 3,074.15.

Brian Gendreau, a market strategist at the brokerage Cetera Financial Group, said traders were concerned about slower growth in India and Brazil as well. That could rein in a rally that has driven the S&P up almost 12 percent this year.

Stocks of mining companies, which rely on rising world demand, plunged.

Also Tuesday, China raised the price of gasoline for the second time in two months. That could hurt demand for fuel.

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