NEW YORK (Reuters) - Stocks extended losses on Wednesday, with major indexes briefly down more than 1 percent, as the euro continued its decline against the dollar on growing fears of a Greek euro zone exit and doubts about the outcome of an EU summit later in the day. The Dow Jones industrial average dropped 131.46 points, or 1.05 percent, to 12,371.35. The S&P 500 Index fell 12.49 points, or 0.95 percent, to 1,304.14. The Nasdaq Composite lost 24.17 points, or 0.85 percent, to 2,814.91. (Reporting by Rodrigo Campos, editing by Dave Zimmerman)

WASHINGTON (Reuters) - New single-family home sales rose solidly in April and prices pushed higher, offering further evidence the housing market was turning the corner. The Commerce Department said on Wednesday sales increased 3.3 percent to a seasonally adjusted 343,000-unit annual rate after a 332,000-unit pace in March. The report, whose details were fairly bullish, came on the heels of news on Tuesday that home resales hit a two-year high in April and suggested the housing market recovery was gaining traction. ...

(Reuters) - Facebook Inc and banks including Morgan Stanley were sued by the social networking leader's shareholders, who claimed the defendants hid Facebook's weakened growth forecasts ahead of its $16 billion initial public offering. The defendants, who also include Facebook Chief Executive Officer Mark Zuckerberg, were accused of concealing from investors during the IPO marketing process "a severe and pronounced reduction" in revenue growth forecasts, resulting from increased use of its app or website through mobile devices. Facebook went public last week. The lawsuit was filed in U.S. ...

BERLIN (Reuters) - The impact of a Greek exit from the euro zone would be substantial but "manageable", Germany's Bundesbank said on Wednesday, raising pressure on Athens to keep its painful economic reforms on track. In a toughly worded monthly report, the German central bank also said euro zone member states should have a say on further payments of aid to Greece under its 130 billion euro bailout program funded by the IMF and the European Union. ...

(Reuters) - Shares of Dell Inc fell 15 percent on Wednesday after a weak revenue forecast and disappointing quarterly results triggered stock price target cuts by a slew of brokerages on the world's No. 3 personal computer maker. Dell shares were down $2.28 at $12.80 on Nasdaq in morning trade after it forecast revenue of $14.7 billion to $15 billion in the current quarter, well short of analysts' average forecast of $15.4 billion. ...