Stocks fell significantly Thursday after a weak regional U.S. manufacturing report intensified worries that the economy is heading toward a recession, if it is not already in one. The Philadelphia Fed index, a regional reading on manufacturing, fell to negative 24.0 from negative 20.9 in January, surprising economists who were looking for manufacturing to improve somewhat. Negative readings suggest contraction in the sector. In other economic news, the January index of leading economic indicators fell 0.1 percent as expected. It fell for the fourth consecutive month. Weekly jobless claims declined last week, the Labor Department said, but the four-week moving average, seen as a more accurate indicator of the labor market, rose to levels not seen since October 2005 in the aftermath of Hurricane Katrina. Light sweet crude for April delivery fell $1.47 to $98.23 a barrel on the New York Mercantile Exchange, retreating despite a weaker-than-expected weekly oil inventory report. The March crude futures contract settled at a record high of $100.74 a barrel on Wednesday. The Philadelphia Fed report erased early stock gains led by the technology sector, which was reacting to an upgrade in Cisco stock and a positive profit forecast from BlackBerry-maker Research in Motion (RIM). The Dow Jones industrial average fell 142.96, or 1.15 percent, to 12,284.30. Twenty-six of the index's 30 components fell, led by General Motors, DuPont, Merck, and J.P. Morgan. Microsoft was little changed after the company said it will share more information about its products and technology so that developers can more easily create compatible software. The broader Standard & Poor's 500 index fell 17.50, or 1.3 percent, to 1,342.53. The technology-heavy Nasdaq composite index, or 1.2 percent, to 2,299.78. Cisco gained after Citigroup upgraded its shares, saying that it offers good value for long-term investors. BlackBerry-maker RIM gained 9 percent after the company reaffirmed its fourth-quarter profit information and increased its subscription outlook. The New York Stock Exchange composite index fell 96.23 to 8,977.73. The American Stock Exchange composite index fell 6.17 to 2,258.19. And the Russell 2000 index fell 13.74 to 696.28.
