The Dow industrials and the S&P 500 fell on Thursday as data showing weaker-than-expected economic growth and a jump in jobless claims increased concerns about the corporate profit outlook.
Even so, news of a proposed buyout of ImClone Systems Inc buoyed biotechnology shares, keeping the Nasdaq aloft.
Investors pummeled shares of big manufacturers, including Caterpillar Inc, down 2.4 percent, and Boeing Co, off 2.7 percent.
The two economic reports turned out to be a letdown, coming a day before the government’s release of the July payrolls report.
Exxon Mobil Corp shares slid 3.3 percent, adding to the negative tone, after it disappointed investors with weaker-than-expected production despite reporting a record quarterly profit. Exxon Mobil was the heaviest weight on both the Dow and the S&P 500.
“Investors are on edge,” said Alan Lancz, president of Alan B. Lancz & Associates Inc., an investment advisory firm, based in Toledo, Ohio. “This morning’s economic numbers were disappointing. Unemployment is a concern. The economy is still growing but it’s definitely slow growth.”
The Dow Jones industrial average fell 113.83 points, or 0.98 percent, to 11,469.86. The Standard & Poor’s 500 Index fell 8.79 points, or 0.68 percent, to 1,275.47. The Nasdaq Composite Index gained 7.91 points, or 0.34 percent, to 2,337.63.
The Nasdaq rose after Bristol-Myers Squibb Co offered to buy out the remaining stake in biotech partner ImClone.
ImClone shares notched their biggest one-day advance in 13 years, shooting up 37.6 percent to $63.91 on Nasdaq.
But Exxon Mobil’s stock dropped $2.73 to $81.65, while shares of Caterpillar, the maker of excavators and bulldozers, fell $1.75 to $70.31.
Boeing, a major U.S. aircraft maker and defense contractor, declined $1.71 to $62.11.
The U.S. economy grew at a 1.9 percent annual rate in the second quarter, below the 2.0 percent growth rate for gross domestic product that analysts polled by Reuters had forecast.
According to another report, the number of U.S. workers filing new claims for jobless benefits jumped 44,000 last week, above the Wall Street consensus.
But another key indicator showed business activity in the U.S. Midwest rose unexpectedly in July.