Stocks Mildly Weaker After Troubling Economic Data

After opening slightly higher today, stocks weakened as various economic data poked holes in the view that the economy is recovering.

The Dow is down 44 points, the Nasdaq is down 7 and the S&P 500 is down 5.

One of the most alarming reports was the Philly Fed Index, which measures manufacturing in the Philadelphia region. The index fell to a 10-month low of 8, well below the consensus of of 20. The index was reported at 21.4 in May. A reading above 0 indicates factory growth in the region.

In addition, data on the jobs front, aremained weak. Initial jobless claims came in at 472,000 an increase of 12,000 from the previous week's revised figure of 460,000 and above the consensus of 450,000. The 4-week moving average was 463,500, a decrease of 500 from the previous week's revised average of 464,000.

On a positive note, the CPI report showed that consumer prices remained subdued. The core reading was down 0.2%, in-line with the consensus. Ex-food and energy, the reading was up 0.1%, also in-line with the consensus.

Late-quarter earnings reports continue to trickle in, as investors wait for the more important second quarter results. J.M. Smucker Co. (NYSE: SJM), The Kroger Co. (NYSE: KR), and Pier 1 Imports Inc. (NYSE: PIR) rose after better-than-expected results. Smithfield Foods Inc. (NYSE: SFD) fell after its results.

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