Worse-than-expected Economic Data Thwart Rally

MADLEN READ

NEW YORK (AP) — Investors broke the stock market's four-day rally and sold off after U.S. data on the services industry and factory orders came in below forecasts. Factory orders actually rose in April, but the report was a disappointment to investors, who had anticipated a larger increase.

The Dow Jones industrial average fell nearly 66 points, or 0.8 percent, while the Standard & Poor's 500 index fell 1.4 percent. The Nasdaq composite index, which has been outperforming the other indicators this year, fell just 0.6 percent.

Since the Dow sank to its 12-year low in early March, optimism about the economy's stabilization has buoyed the index by more than 30 percent. Over those three months, topping investors' expectations meant clearing a relatively low bar. ...