Stocks recover from economic jolts

NEW YORK -- Stocks recovered Thursday after getting hit by more bad readings on the economy.

Early on, the Dow Jones industrial average fell more than 100 points after the unwelcome news from government reports on factory orders and unemployment claims as well as companies reporting lackluster quarterly results.

Most economic news was grim: The Labor Department said initial claims for unemployment benefits have risen to 626,000, a 26-year high. And the Commerce Department said factory orders fell for the fifth straight month in December.

The data overshadowed the government's report that productivity rose 3.2% in the fourth quarter, almost three times what analysts expected.

Investors are also jittery ahead of the week's most anticipated economic gauge, Friday's January payrolls report.

Investors also have been sorting through corporate earnings and economic data as they wait for a stimulus plan to pass the Senate. The bill keeps swelling — most recently, a new tax break for homebuyers pushed the cost well above $900 billion.

Another round of weak retail sales and troubling results from Cisco Systems also weighed on stocks.