Wed, July 28, 2010
Stocks are falling slightly after another disappointing economic report added to doubts about the recovery.
The Commerce Department's durable goods orders report for June indicates manufacturing growth is slowing. Orders for goods expected to last at least three years fell 1 percent last month. That's well short of the 1 percent gain economists had forecast.
Investors have been trying in recent weeks to balance strong earnings and corporate outlooks with economic data that isn't as encouraging.
The Dow Jones industrial average is down 20.51, or 0.2 percent, at 10,517.56. The Standard & Poor's 500 index is down 4.60, or 0.4 percent, at 1,109.24, while the Nasdaq composite index is down 14.20, or 0.6 percent, at 2,274.05.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stocks fell slightly Wednesday after another disappointing economic report added to doubts about the recovery.
The Commerce Department's durable goods orders report for June indicated manufacturing growth is slowing. Orders for goods expected to last at least three years fell 1 percent last month, well short of the 1 percent gain that economists polled by Thomson Reuters had forecast.
Orders dipped 0.6 percent when the volatile transportation sector was excluded. Economists had expected a small gain.
Investors have been trying in recent weeks to balance strong earnings and corporate outlooks with economic data that isn't as encouraging. A larger-than-expected drop in consumer confidence Tuesday helped push stocks mostly lower even though another batch of robust earnings reports came out.
Economic reports have generally shown that the recovery is slowing and growth will remain weak. The Federal Reserve releases a survey of economic conditions later Wednesday called the beige book. It assesses the state of the economy by region and will be closely watched for signs of a rebound.
The beige book is especially important after cautious words from Fed chairman Ben Bernanke last week led to a sell-off in stocks. He called future growth "uncertain," which worried investors who look to Bernanke for reassurances that a rebound is under way.
In late morning trading, the Dow Jones industrial average fell 10.67, or 0.1 percent, to 10,529.37. The Standard & Poor's 500 index fell 3.05, or 0.3 percent, to 1,110.79, while the Nasdaq composite index fell 9.19, or 0.4 percent, to 2,279.06.
Losing stocks narrowly outpaced gainers on the New York Stock Exchange, where volume came to 96.2 million shares.
Volume has been light even by summer standards, which has added to the day-to-day volatility, said Uri Landesman, president of Platinum Partners. The low volume is the result of investors who aren't sure about where the market is headed, he said.
"On the one hand, there's a belief the market is 'cheap,'" Landesman said. "On the other hand, there's still risk aversion out there."
The yield on the 10-year Treasury note, which moves opposite its price, was unchanged at 3.05 percent compared with late Tuesday. That yield helps set interest rates on mortgages and other consumer loans.
Earnings were mixed on Wednesday, contributing to a muted tone in the stock market. Boeing Co. said its profit slipped from a year ago, but results still topped expectations. The airplane maker also didn't adjust its outlook.
Sprint Nextel Corp. said it added subscribers to its network for the first time in three years during the second quarter as it improves customer service and retention. Its revenue slightly topped forecasts.
ConocoPhillips profit more than doubled as refining margins improved and oil prices rose.
Sprint Nextel rose 9 cents to $4.92. ConocoPhillips dipped 10 cents to $54.34 after rising earlier in the day. Boeing fell $1.04 to $67.58.
The Dow's four-day winning streak is in jeopardy. It eked out a 12 point advance Tuesday thanks to strong earnings from chemical maker DuPont Co., a component of the index. Broader indicators all dipped after another disappointing report showed consumer confidence is weakening.
Overseas, Britain's FTSE 100 fell 0.7 percent, Germany's DAX index dropped 0.6 percent, and France's CAC-40 rose 0.2 percent. Japan's Nikkei stock average jumped 2.7 percent.
(Agencies)
