The Dow Jones industrial average fell 53.19 to 5,709.67.

Decliners led advancers by 1,574 to 808 on the New York Stock Exchange. NYSE volume totaled 338.24 million shares vs. 428.37 million on Friday.

Broad-market indexes also were lower. The NYSE composite slipped 3.22 to 360.52. The S&P 500-stock index fell 6.27 to 672.24.

The Nasdaq composite index fell 11.32 to 1,236.48. At the American Stock Exchange, the market value index fell 3.18 to 610.77.

Bonds started the day higher, but slid after the National Association of Realtors reported that sales of existing homes rose 0.5 percent to 4.22 million in April, the third consecutive advance.

The mood worsened in the afternoon after Johnson Redbook reported an increase in retail sales for the first three weeks of May compared with April.

Since early March, the financial markets have been struggling to interpret mixed signals on the economy's underlying health.

Indications of surging employment levels had prompted worries that heavy consumer spending would cause quicker inflation, but some mild readings on inflation have helped offset some concerns.

On Tuesday, though, stocks followed bonds lower as the yield on 30-year Treasuries topped 6.85 percent.

The market also derived little solace from a report showing that consumer confidence weakened in May, hurt by lowered expectations about business conditions and income levels. The widely followed survey by the Conference Board research group marked the first drop in confidence this year.