Stocks sink on weak industrial earnings

NEW YORK >> U.S. stocks slumped again Thursday as investors continued to sell shares of technology and internet companies, industrials, and companies that rely on consumer spending.

Several industrial companies tumbled after releasing weak quarterly reports, and European stocks also fell as European Union leaders criticized Italy’s spending plans.

At the start of trading, stocks took small losses as bond prices fell and interest rates spiked. While the gain in interest rates didn’t last, stocks turned lower late in the morning, and by the end of the day they had wiped away most of their big rally from Tuesday.

Stocks have skidded over the last two weeks, and there are signs investors are worried about future economic growth. The S&P 500 has fallen 5.5 percent in volatile trading since Oct. 3, and technology, industrial and energy companies have taken some of the biggest losses. Those companies tend to do better when the economy is growing more quickly and consumers and businesses have more money to spend.

“If uncertainty starts to creep in around trade or growth, that could be a risk to the recovery in ... corporate spending,” said Jill Carey Hall, senior U.S. equity strategist for Bank of America Merrill Lynch. She said investors will monitor company reports over the next few weeks to

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RICHARD DREW — THE ASSOCIATED PRESS FILE Trader Peter Mazza, left, works with trader Daniel Trimble on the floor of the New York Stock Exchange.