NEW YORK – U.S. blue chips fell for a fourth day yesterday and the Nasdaq slid more than 1 percent after a report showed manufacturing growth slowed to a near standstill, raising concerns the economy won't expand at a pace strong enough to support robust corporate profits.
Shares of manufacturers and technology companies, among the top performers in recent months and the most sensitive to a slowdown in the economy, led the decline. Conglomerate United Technologies Corp. and aluminum producer Alcoa Inc. were among the Dow's biggest decliners, while graphics chip maker Nvidia Corp. dragged on the Nasdaq.
The Dow Jones industrial average fell 49.71, or 0.41 percent, to 12,031.02.
Broader stock indicators also closed lower. The Standard & Poor's 500 index fell 10.13, or 0.74 percent, to 1,367.81, and the Nasdaq composite index fell 32.36, or 1.37 percent, to 2,334.35.
The difference between equity investors' sunny focus and bond investors' gloomy outlook widened. Bonds rose as debt investors bid up the possibility of a sharp economic downturn.
The yield on the 10-year Treasury fell to 4.57 percent from 4.60 percent Tuesday. The dollar was lower against other major currencies. Gold prices posted a strong advance.
There is still a fair amount of contrasting economic data, said Doug Johnston, head of U.S. trading at Canaccord Adams in Boston.
“There are a lot of warning signs, but if it were glaringly obvious, everyone would be on it,” he said.
Falling bond yields, for instance, are helping keep interest rates low, a boon to homeowners with adjustable rate mortgages.
Commodities prices remain weak. Crude oil futures dropped yesterday; a barrel of light crude settled at $58.71, down 2 cents in trading on the New York Mercantile Exchange. Oil's July high was more than $78 a barrel.
In company news, United Technologies dropped 2.2 percent, or $1.47, to $64.25, while Alcoa shares declined 1.5 percent, or 43 cents, to $28.33, both on the New York Stock Exchange.
On the Nasdaq Stock Market, Nvidia lost 7.7 percent, or $2.69, to $32.18. The company said it expects to restate previous financial statements to correct errors related to accounting for stock-based compensation expense.
Shares of Garmin Ltd. ranked among the heaviest weights on the Nasdaq 100 after the maker of navigational devices said sales fell slightly below Wall Street's view. Garmin's stock sank 15.8 percent, or $8.43, to $44.98 on the Nasdaq.
Papa John's International Inc. fell for a second day, dropping $4.37, or 11.91 percent, to $32.33 after the pizza chain operator reported a 1.1 percent decline in October same-store sales, its first decline in 22 months.
Declining issues led advancers by 2 to 1 on the New York Stock Exchange, where consolidated volume came to 2.92 billion shares, compared with 2.78 billion on Tuesday.
The Russell 2000 index of smaller companies was down 14.69, or 1.92 percent, at 752.15.
Overseas, Japan's Nikkei stock average fell 0.15 percent. Britain's FTSE 100 rose 0.33 percent, Germany's DAX index was up 0.37 percent, and France's CAC-40 gained 0.41 percent.
