U.S. stocks fell as dividend cuts triggered a sell-off in insurers and an unexpected drop in home sales dragged down industrial shares, overshadowing speculation that banks will pass the government’s so-called stress tests.

Lincoln National Corp. tumbled 14 percent after reducing its payout by 95 percent, while Allstate Corp. lost 5.7 percent after cutting its in half. Caterpillar Inc. and Hovnanian Enterprises Inc. declined at least 3.8 percent as a Realtors group said sales of existing homes slid 5.3 percent in January to the lowest since 1997. Bank of America Corp. jumped 9.1 percent as Chief Executive Officer Kenneth Lewis said his bank will pass the government’s review of its balance sheet.

The S&P 500 slid 1.1 percent to 764.9 a day after rebounding from a 12-year low. The Dow Jones Industrial Average fell 80.05 points, or 1.1 percent, to 7,270.89. The Russell 2000 Index lost 2.7 percent. Almost four stocks retreated for each that rose on the New York Stock Exchange.

(Bloomberg.com)