U.S. consumer sentiment fell in August as expectations for future business and labor-market conditions took a hit, said the Conference Board's monthly survey. The index fell to 89.4 from 90.2 in July, missing the higher 90.2 reading expected by economists polled by The Wall Street Journal.

The report was part of a batch of consumer data ahead of tomorrow's personal consumption expenditures inflation gauge and Friday's University of Michigan's sentiment survey. Other key data released today:

New home sales sank in July: Sales of new single-family homes fell to 607,000 in July, from 678,000 in June, according to a monthly Census Bureau and Department of Housing and Urban Development report. A consensus of economists polled by The Wall Street Journal expected 615,000 sales in July.

Home prices rose in June but appreciated slower than inflation: The S&P Cotality Case-Shiller index posted a 1.5% annual gain for June, up from the previous month. But home prices fell in real, or inflation-adjusted, terms for the 13th consecutive month. Regional performance diverged: Chicago led the nation with a 6.9% year-over-year gain, while Seattle lagged with a 2% loss.