U.S. stocks declined as banks fell after Moody’s Investors Service said commercial property values plunged and Home Depot Inc. retreated following an unexpected slump in housing starts.

Marshall & Ilsley Corp. and Zions Bancorporation lost more than 14 percent following the Moody’s report that showed real- estate prices fell 21 percent in March from a year earlier and predicted additional declines. Home Depot, the biggest home- improvement retailer, slumped 5.3 percent even after beating analysts’ profit estimates as the Commerce Department said builders broke ground on the fewest homes on record in April.

The Standard & Poor’s 500 Index, which jumped 3 percent yesterday for its biggest gain in two weeks, dropped 0.2 percent to 908.13. The Dow Jones Industrial Average declined 29.23 points, or 0.3 percent, to 8,474.85. About 11 stocks rose for every 10 that fell on the New York Stock Exchange.

Stocks rose earlier, giving the S&P 500 a 0.7 percent advance, as analysts advised buying shares of utilities and commodity producers. The index then retreated 0.9 percent in the final 75 minutes of trading.

(Bloomberg.com)