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Wall Street: Stocks drop on Europe worries; gold sinks

September 19, 2011 |  9:34 am

Wall Street
Wall Street fell sharply in early trading Monday as investors worried that Greece's debt crisis is reaching a boiling point. At one point, the Dow Jones industrial average, which just posted its largest weekly gain in more than two months, dropped 184 points to 11,323. Gold: Trading down $27.20 at $1,787.50.

Obama: Investors were also weighing an aggressive pitch by President Obama to cut the budget deficit. His plan seeks to raise $1 in new revenues for every $2 in cuts, and to ultimately generate $1.5 trillion in new revenues through an overhaul of the tax code.

Housing: The National Assn. of Home Builders reported that its housing market index dropped to 14 in September, from 15 a month earlier. The data came in worse than expected, though the news was of little surprise to the markets, which barely budged after the housing numbers were released.

The Fed: Investors are also focusing on what the Federal Reserve might say on Wednesday at the conclusion of a two-day meeting. There's already some indication that the Fed and other central banks are taking some of the global economic woes a little more seriously, taking action last week to pump U.S. dollars into European banks.

-- Joe Bel Bruno

Photo: The Wall Street stop on the New York City subway system. Credit: Bloomberg