Stocks drop after sharp fall in July home sales

Stocks fell Tuesday after another disappointing report on the housing market renewed worries about the economy.

The Dow Jones industrial average lost about 80 points in midday trading after news that sales of previously occupied homes fell last month to their lowest level in 15 years.

The Dow briefly dipped below 10,000 for the first time in seven weeks and was down as much as 183 points earlier in the day before paring its losses. Investors seeking refuge from the latest stock swings piled back into Treasurys, sending interest rates lower. The yield on the two-year Treasury note touched another record low.

Global markets fell sharply. Japanese …