NEW YORK — Wall Street gave up a big advance and turned lower Monday as investors suffered a renewed case of the jitters ahead of the Federal Reserve's meeting on interest rates later this week.

The stock market, which has seen huge swings in recent weeks, was initially relieved to hear from the National Association of Realtors that existing home sales declined in May by only 0.3 percent to 5.99 million units. The tepid reading was expected, and indicated that the housing sector is still weak — the pace of existing home sales was the slowest in four years; housing inventories rose by 5 percent to the highest level since 1992; and the median home price fell for a record 10th consecutive month.

The data wasn't enough to keep the stock market afloat, so when crude oil prices rose back above $69 a barrel on news of U.S. refinery outages, many investors chose to take money off the table. High energy prices could translate to accelerating inflation — which investors fear the Fed may use as a reason to raise interest rates later in the year.

HOME SALES AT LOWEST LEVEL IN 4 YEARS

WASHINGTON — Sales of existing homes fell for a third straight month in May, dropping to the lowest level in four years as the median sales price declined for a record 10th consecutive month.

In a troubling sign for the future, the inventory of unsold homes shot up to the highest level in 15 years, meaning more downward pressure on prices in the months ahead until the inventory glut is reduced.

Sales fell by 0.3 percent in May to a seasonally adjusted annual rate of 5.99 million units, the National Association of Realtors reported Monday. Sales now stand 10.3 percent below where they were a year ago.

The median price of an existing home sold last month fell to $223,700, down 2.1 percent from a year ago. It marked the 10th straight price decline compared with a year ago, the longest stretch on record.

ZOELLICK CONFIRMED AS WORLD BANK LEADER

WASHINGTON — Robert Zoellick, a seasoned player in international financial and diplomatic circles, won the unanimous approval of the World Bank's board on Monday to become the poverty-fighting institution's next president.

Zoellick will succeed Paul Wolfowitz, whose last day is Saturday, ending a stormy two-year tenure. The new president will take the reins Sunday, the first day of his five-year term.

Wolfowitz courted controversy from the start because of his role in the Iraq war when he was deputy defense secretary. However, it was his role in arranging a hefty pay raise for Shaha Riza, his girlfriend and bank employee, that forced his upcoming departure. That prompted a staff revolt and calls by Europeans and others for Wolfowitz to resign.

President Bush turned to Zoellick — his former top trade envoy and No. 2 diplomat— to heal the wounds and mend the relationships strained by the Wolfowitz episode.

GLG PARTNERS ENTERING REVERSE TAKEOVER

LONDON — GLG Partners LP, one of Europe's largest hedge funds, said Monday it is selling itself in a $3.4 billion reverse takeover that will give it access to the U.S. stock market.

Under the terms of the deal with Freedom Acquisition Holdings Inc., the combined company will be named GLG Partners Inc. and will trade on the New York Stock Exchange. GLG, which is not currently traded, may also seek a listing in Europe.

New York-based Freedom Acquisition is a "blank check" company, an investment vehicle that allows the parent company to raise money for acquisitions by listing on the stock exchange. Such companies reveal acquisitions after putting shares on the market.

WALGREENS PROFIT UP IN 3RD QUARTER

CHICAGO — Drugstore Walgreen Co. said Monday that an increase in prescription sales, especially among profitable generic medications, helped its third-quarter profit climb nearly 20 percent.

The nation's biggest pharmacy chain by revenue reported a profit of $561.2 million, or 56 cents per share, in the quarter that ended May 31. During the same period last year, the Deerfield-based company posted earnings of $469.2 million, or 46 cents per share.

Meanwhile, the company said Monday that it added 129 new stores during the quarter, and was on pace to open nearly 500 stores during the 2007 fiscal year.

At the end of the quarter Walgreen operated 5,751 drugstores in 48 states and Puerto Rico.

OIL, GAS FUTURES RISE

NEW YORK — Oil and gas futures rose Monday as reports of new refinery outages countered news that Nigerian labor unions ended a strike over the weekend.

Analysts said traders started buying after hearing of problems at two refineries over the weekend, which revived concerns about domestic gasoline supplies. Oil had started the day dropping more than $1 a barrel and pulling other energy futures lower in response to the strike's end.

Light, sweet crude for August delivery rose 4 cents to settle at $69.18 a barrel on the New York Mercantile Exchange, while gasoline for July added 1.59 cents to settle at $2.3025 a gallon. August Brent crude rose 18 cents to settle at $71.36 a barrel on the ICE Futures exchange in London.

JUDGE SUGGESTS SOLUTION ON VONAGE-VERIZON DISPUTE

WASHINGTON — A judge suggested a possible compromise in a patent dispute between Internet phone carrier Vonage and Verizon Communications that would allow Vonage to continue signing up new customers while it modifies its technologies.

Judge Timothy B. Dyk, part of the three-judge panel of the U.S. Court of Appeals for the Federal Circuit, made the remark during oral arguments Monday.

The panel is considering Vonage's appeal of a March jury verdict that found Vonage infringed on three Verizon Communications Inc. patents in constructing its Internet phone system. The jury in awarded Verizon $58 million, plus future royalties for continued patent infringement.

DEVELOPERS WIN IN ENVIRONMENTAL CASE

WASHINGTON — The Supreme Court sided with developers and the Bush administration Monday in a dispute with environmentalists over protecting endangered species.

The court ruled 5-4 for home builders and the Environmental Protection Agency in a case that involved the intersection of two environmental laws, the Clean Water Act and the Endangered Species Act.

Justice Samuel Alito, writing for the conservative majority, said the endangered species law takes a back seat to the clean water law when it comes to the EPA handing authority to a state to issue water pollution permits. Developers often need such permits before they can begin building.

TYSON LAUNCHES RENEWABLE FUELS VENTURE

SPRINGDALE, Ark. — Tyson Foods Inc., the world's largest meat producer, announced Monday its second joint venture to make synthetic fuel out of leftover fat from beef, pork and chicken.

Tyson and Tulsa, Okla.-based Syntroleum Corp. said they will spend $150 million to build the first of what could be several plants to refine animal and vegetable fats into diesel, jet fuel and fuel for the military. It is the second such venture Tyson has announced in the past two months.

Tyson Chief Executive Richard Bond said the joint venture with Syntroleum was part of Tyson's effort to become a leading player in the renewable energy business.

Tyson, based in Springdale, Ark., created a renewable fuels division last year and in April announced its first venture, a deal with oil company ConocoPhillips to produce and market diesel fuel for U.S. vehicles using beef, pork and poultry fat.

COURT REJECTS PHARMACEUTICAL CASE

WASHINGTON — The Supreme Court on Monday refused to consider a lawsuit alleging two pharmaceutical companies conspired to monopolize the market for a drug used to treat breast cancer.

Consumers who filed the suit asked the justices to consider when an agreement not to market a generic drug is a violation of federal law.

The 2nd U.S. Circuit Court of Appeals upheld a federal judge, who concluded the agreement between the two companies did not restrain trade in violation of federal law.