US stocks ease amid uncertainty over economy

NEW YORK (AP) — Stocks ended an erratic day with a modest loss Thursday as investors tried to reconcile another batch of conflicting economic signals.

The Dow fell 30.72, or 0.3 percent, to 10,467.16. Although the Dow has fallen 70 points over the past two days, it is up 7.1 percent for July with one trading day to go.

The Dow Jones industrial average closed down 30 points after falling as much as 110 and rising 87 during the course of the day. The other big market indexes also closed slightly lower.

Thursday’s trading fit with the market’s months-long pattern. Investors are torn between upbeat earnings news from companies and reports that point to an uncertain recovery. That indecision was clear as stocks rose on strong earnings at Southwest Airlines Co., Exxon Mobil Corp. and other companies, then fell on disappointment over a slight drop in first-time claims for unemployment benefits.

Traders were also uneasy ahead of the first reading on US gross domestic product for the April-June quarter, to be released Friday.

“This is a market that is trying to ascertain how deep the downturn is going to be and it is a market that’s future-looking,” said Quincy Krosby, a market strategist with Prudential Financial.

There was little to help traders get that clarity Thursday. The Labor Department said initial claims for unemployment benefits dropped by a modest 11,000 to 457,000 last week. That’s slightly better than the 459,000 forecast by economists polled by Thomson Reuters, but investors were disappointed because the drop was so small.

A big chunk of the July gain came in just four days that ended Tuesday, as the average rose 420 points in response to strong earnings. On Wednesday, however, the Federal Reserve’s assessment of the economy region by region reaffirmeed for investors the fact tha the recovery has slowed. Stocks fell and they continued their slide amid Thursday’s uncertainty.