Wall St ends lower 1% on worries over European debt crisis

Dow Jones Industrial Average fell 1.09% or 138.12 points at 12502.66. Nasdaq Composite shed 1.95% or 56.26 points at 2836.16. Standard & Poor's 500 slipped 1.6% or 21.3 points at 1313.72.

In economic data, new home sales in May rose 7.6%, or 369,000 units, much better than expectations for 346,000. The rise in new home sales, to their highest levels since April 2010, provided a ray of hope in an otherwise gloomy economic picture.

In key data to watch out for in US today, the consumer confidence index for June is seen slipping slightly. Consensus estimates are at 63.5 compared to the 64.9 reading in April.

The S&P Case Shiller index for home prices meanwhile could provide some optimism. The April reading is seen higher at 0.4% compared to 0.1% in March. 

In manufacturing data, the Richmond fed manufacturing index for June is seen slightly higher at 5 after it fell 10 points to 4 in May.

In the currency space, the Euro stabilised around 1.25 after slipping to its lowest level in almost two weeks as investors doubted a European summit would find a solution to the region's escalating debt crisis. The dollar index is holding above 82.

In commodities, oil steadied & came off lows as short-covering countered an easing of concerns that tropical storm Debby would batter US production platforms and fading hopes that a european summit would produce a viable solution to the region's debt crisis.

In the precious metal space, gold holds above the 1580 level ahead of the EU summit on Thursday.