Stocks slip as pessimism grows

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. “Why be in the market if there’s no (near-term) prospects for growth?”

Oil prices fell again on worries that future demand will wane if economic growth remains tepid. Energy stocks were among the worst performers, including oil companies Chevron Corp. and ConocoPhillips.

Overseas markets also fell, reacting to reports Thursday that initial claims for unemployment benefits in the U.S. rose last week and that 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.

The indexes seesawed through the week as investors shuttled between optimism and pessimism about the economy.

About three stocks fell for every two that rose on the New York Stock Exchange, where consolidated volume came to 3.8 billion shares, down from 4.4 billion Thursday.

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.