U.S. stocks fell for a third straight session on Friday due to weaker-than-expected data on durable goods and home sales, while disappointing results from BlackBerry maker Research in Motion weighed on the Nasdaq.
New orders for long-lasting U.S. manufactured goods dropped by their biggest margin in seven months, while a rise in new home sales was below Wall Street's expectations, raising questions about the economic recovery.
The numbers are throwing some cold water ... investors are now in doubt, said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in New Jersey.
The Dow Jones industrial average <.DJI> was down 60.76 points, or 0.63 percent, at 9,646.68. The Standard & Poor's 500 Index <.SPX> fell 8.11 points, or 0.77 percent, at 1,042.67. The Nasdaq Composite Index <.IXIC> shed 19.44 points, or 0.92 percent, to 2,088.17.
The Nasdaq was hit by a decline of more than 16 percent in shares of Research In Motion Ltd, a day after the BlackBerry maker reported second-quarter revenue that missed estimates and gave a disappointing outlook. The stock was trading at $69.91.
The weaker durable goods report hurt manufacturing and industrial shares. Aluminum company Alcoa Inc fell 3.1 percent to $13.09 and General Electric was down 2.4 percent to $16.18.
Losses were broad-based with financial and industrial shares weighing the most on the S&P 500. America International Group was down 3.5 percent at $43.43 and Bank of America fell 2.4 percent to $16.58.
Stocks had rallied in recent weeks, partly on expectations of a strong bounce-back from a deep recession that started in December 2007, but recent data has tested those hopes.
A pledge from world leaders at the Group of 20 nations summit to keep emergency economic supports in place until a robust recovery takes hold helped stem fears that government efforts to support financial markets would end soon.
The G20 rich and developing countries, holding a two-day summit in Pittsburgh, will aim to implement new rules by the end of 2012 to improve bank capital and discourage excessive leverage.
(Reporting by Angela Moon, Editing by Kenneth Barry)