US oil price sinks on disappointing housing data

U.S. oil price dropped Monday as American existing-home sales declined in June. U.S. total existing-home sales dipped 1.2 percent to a seasonally adjusted annual rate of 5.08 million in June, missing market expectations, the National Association of Realtors said. Existing home sales, which tally completed transactions for single-family houses, townhouses and condominiums, account for a larger share of the market than new home sales. Moreover, the Chicago Fed National Activity Index, a monthly index designed to gauge overall economic activity and related inflationary pressure, stood at minus 0.13 in June, up from minus 0.29 in May. Readings below zero typically imply below-trend national economic activity and subdued inflationary pressure over the coming year. About a third of S&P 500 companies are scheduled to report earnings this week, including eight Dow components such as AT&T and Boeing. Investors want to find more clues about the U.S. economy. Dow component McDonald's Corp. reported disappointing earnings before Monday's opening bell. The fast food chain made net income of 1.40 billion U.S. dollars, or 1.38 dollars per share, on revenues of 7.08 billion dollars in the second quarter. The result was below market's expectations of earning 1.40 dollars per share. Light, sweet crude for August delivery lost 1.14 dollars, to settle at 106.91 dollars a barrel on the New York Mercantile Exchange. Brent for September delivery went up 8 cents, to close at 108. 15 dollars a barrel.