Stocks slip as new worries arise about pace of economic recovery
NEW YORK -- The stock market is holding up, just not pressing ahead as the economic signs look a little less promising.
Stocks had their fourth straight day of incremental moves as traders ran down a new list of concerns: Commodity prices slumped on fears that demand will fall, orders for big-ticket manufactured goods dropped more than expected last month, and demand was weak at an auction for government debt.
The Dow Jones industrial average fell 26.00, or 0.3%, to 9,070.72. The broader Standard & Poor's 500 index fell 4.47, or 0.5%, to 975.15, while the Nasdaq composite index slid 7.75, or 0.4%, to 1,967.76.
Investors are uneasy but aren't giving up on stocks. The Dow lost only 26 points on Wednesday and major indexes are still up about 11% since only mid-July. Analysts say the market's buoyancy after such a big gain is a welcome sign of stability, but also that more good news is needed for stocks to resume their climb.
For now, though, investors are finding more reasons for concern. The price of oil and raw materials fell after stocks tumbled in China on fears that the growth in that country's economy would slow. That could hurt demand for a range of commodities. A jump in U.S. crude inventories further weighed on the price of oil.
The Commerce Department said orders to U.S. factories for manufactured goods — those expected to last at least three years — fell an unexpectedly steep 2.5% in June. The slide reflected troubles in the auto industry and a drop in demand for commercial aircraft. It was the largest decrease in five months, and was worse than the 0.6% decrease analysts were expecting.
Lackluster demand at a government debt auction for the consecutive second day fanned worries that rising interest rates could hobble a recovery in the economy. That boded poorly for a big auction of 7-year Treasury notes on Thursday.
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