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Weak signals on the economy send stocks plunging

June 5, 2013 • Business


FILE – In this Friday, May 31, 2013 file photo, trader Robert Moran, right, works on the floor of the New York Stock Exchange. Global stock markets fell Wednesday June 5, 2013 as signs the U.S. Federal Reserve might scale back its super-loose monetary policy caused investors to trim equity investments. (AP Photo/Richard Drew, File)

NEW YORK (AP) — A series of weak economic reports sent the stock market plunging to its lowest level in a month on Wednesday.

Companies like miners, banks and chemical makers, whose fortunes are most closely tied to the prospects for growth, led the market lower.

The troubling data included weak hiring at private companies, a plunge in mortgage applications and sluggish orders to U.S. factories.

The Dow Jones industrial average fell 217 points and finished at 14,960, a drop of 1.4 percent. It was the first close below 15,000 since May 6 and the biggest decline in seven weeks.

Stocks started lower and declined steadily throughout the day. After rising every month this year and climbing to record levels this spring, some investors said a significant pullback was overdue.

“The rally is tired and people are taking some profits.” said Brad Reynolds, at investment adviser LJPR.

Investors were also unnerved by a sharp 11.5 percent drop in mortgage applications last week. That was a disappointment because the rebound in housing has been one of the key factors supporting the stock market’s Login to read more

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