Stocks drop after sharp fall in July home sales

"Without a boost in job creation, (buyers) just won't have the confidence to step in and buy a new home," David Katz, principal at Weiser Capital Management said.

The same old bad news requiring simple solutions: more jobs in America which means more manufacturing in America, less outsourcing and offshoring and higher levies on imports with a reminder that roaring Indian and Chinese economies are manufacturing based.