In New York, stocks slipped Thursday, but managed to trim bigger losses, after worse-than-expected readings on manufacturing, housing and the labour market fueled fears that the economy is heading for another recession.
The Dow Jones industrial average slid another 41.49 points to end the day at 9,732.53, for its lowest close since Oct. 30.
The S&P 500 index faded 3.34 points to 1,027.37, closing at its lowest point since Oct. 2.
The Nasdaq composite index moved 7.88 points lower to 2,101.36, closing at its lowest point since Nov. 4.
Declines were broad-based, with 24 of the Dow's components lower, led by American Express, Caterpillar, Merck, United Technologies and JPMorgan Chase
Stocks started higher Thursday as investors opted to dip back into select shares after a brutal second quarter. But the early buying fizzled after the release of the manufacturing and housing market reports.
An earlier reading on weekly jobless claims added to concerns that the economic recovery is losing steam.
Stocks slumped in the second quarter on worries that the European debt crisis would pressure an already struggling U.S. economy, potentially sending it into a double-dip recession. In the quarter, the Dow lost 10%, the Nasdaq lost 12% and the S&P lost just short of 12%.
However, the S&P 500 is off more than 15% from its rally highs in April, a threshold that could set the stage for a bigger selloff in the weeks ahead.
Car and truck makers were releasing June sales figures through the session. General Motors said sales rose 36% from a year earlier, but dipped 12.5% from May. That month-over-month decline was bigger than what economists surveyed by Briefing.com were expecting, providing another indication that the economy is weakening.
Ford Motor said June sales climbed 15% versus a year earlier, but down 13% from May, short of expectations.
Economically speaking, the Institute for Supply Management's ISM index for June fell to 56.2 from 59.7 in May. Economists expected it to dip to 59. While any level over 50 indicates expansion in the sector, the slowing pace of activity was nonetheless a worry to market participants.
In other news, construction spending fell 0.2% in May, the government reported, after rising 2.3% in April. Economists thought it would fall 0.9%.
The National Association of Realtors said its pending home sales index plunged 30% in May, reflecting the end of the tax rebates for homebuyers. Economists expected the index to fall 10.5%. The index rose 6% in April.
One day ahead of the government's big non-farm payrolls report for June, the weekly jobless claims report showed a rise in new claims. The number of Americans filing new claims for unemployment last week rose to 472,000 from a revised 459,000 in the previous week. Economists expected 458,000 new claims.
Continuing claims, a measure of Americans who have been receiving benefits for a week or more, rose to 4,616,000 from a revised 4,573,000 in the previous week. Economists expected a drop to 4,510,000.
Friday's big jobs report is expected to show that employers cut about 100,000 jobs from their payrolls last month. The unemployment rate, generated by a separate survey, is expected to have risen to 9.8% from 9.7%.
A report on private sector hiring released Wednesday showed employers added 13,000 positions in June, missing forecasts for a gain of 61,000.
Treasury prices rose, lowering the 10-year note's yield to 2.93% from Wednesday’s 2.95%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil stumbled $3.00 to $72.63 U.S.
Gold prices fell $46 to $1,200 U.S. an ounce.
ON BAYSTREET
Canadian markets were closed for Canada Day.
