U.S. markets close on low note

The National Home Price Index dropped in the fourth quarter but showed gains in its annual rate of return compared with the third quarter, the report said.

In effect, the pace of declines in the housing market "has stabilized for now," said David Blitzer, chairman of the Index Committee at Standard & Poor's.

The Dow Jones industrial average closed near its low point for the day, down 199.97 points, off 0.97 percent to 10,282.41. The Standard & Poor's 500 dropped 13.41 or 1.21 percent to 1,094.60. The Nasdaq composite index lost 28.59 or 1.28 percent to 2,213.44.

On the New York Stock Exchange, 939 stocks advanced and 2,113 declined on a volume of 4.5 billion shares traded.

The benchmark 10-year Treasury rose 29/32 to yield 3.678 percent.

The euro fell to $1.3507 from Monday's $1.3601. Against the yen, the dollar fell to 90.20 yen from Monday's 91.11 yen.

In Japan, the Nikkei 225 index lost 0.47 percent, 48.37 points, to 10,352.10.

In Britain, the FTSE 100 dropped 0.69 percent, 36.98, to 5,315.09.

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