NEW YORK — Stocks closed moderately lower Friday as investors' pessimistic view of the economy deepened.
There was little reason for investors to buy. There were no reports to offset Thursday's disappointing news that growth in the domestic economy continues to slow. The Dow Jones industrial average fell 57 points a day after falling 144. The other major indexes also fell moderately.
"We're not seeing any significant growth prospects," said Peter Costa, president of Empire Executions.
Oil prices fell again on worries that future demand will wane if economic growth remains tepid. Energy stocks were among the worst performers on the day, including oil companies Chevron Corp. and ConocoPhillips.
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Overseas markets also fell, reacting to reports Thursday that initial claims for unemployment benefits in the U.S. rose last week and manufacturing in the Mid-Atlantic region shrank.
"We're probably on a continuation from yesterday's disturbing claims number," said Paul Zemsky, head of asset allocation at ING Investment Management. "There's really nothing to hang your hat on."
The Dow fell 57.59, or 0.6 percent, to 10,213.62. The Standard & Poor's 500 index fell 3.94, or 0.4 percent, to 1,071.69, while the Nasdaq composite index rose 0.81, or 0.04 percent, to 2,179.76.
About three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 1.1 billion shares.
Traders' vacations have left volume exceptionally low this month. The uncertainty about the economy has made those who are working hesitant to make any big moves.
Data has shown in recent months that private employers are reluctant to hire new workers because they are unsure how strong business will be in the coming quarters. That, in turn, has people worried about their jobs and spending less. But until spending picks up, unemployment could remain high. The vicious circle has investors turning away from stocks.
Mark Luschini, chief market strategist at Janney Montgomery Scott, said companies are also reluctant to hire because of worries about taxes and government programs like the health care reform passed earlier this year.
"The uncertainty that exists on regulatory and income taxes has (employers) in stall mode," Luschini said.
The unemployment rate remains at 9.5 percent and analysts widely agree it needs to fall to lead to a stronger rebound.
In corporate news, Dell Inc. reported a better-than-expected profit Thursday, due largely to increased technology spending by businesses. However, sales in its consumer personal computer division were flat compared with the same quarter last year — further evidence that shoppers are hesitant to buy new goods.
Hewlett-Packard Co. reported quarterly results that were in line with preliminary results it released earlier in the month. Its profit rose 6 percent. Unlike Dell, it had growth in its personal computer sales.