Stocks edge downward as worries continue

NEW YORK - Stocks closed moderately lower Friday as investors' pessimism about the economy deepened.

Oil prices fell again on worries that future demand would wane if economic growth remained tepid. Energy stocks were among the worst performers, including oil companies Chevron Corp. and ConocoPhillips.

Overseas markets also fell, reacting to reports Thursday that initial claims for unemployment benefits in the United States rose last week and that manufacturing in the Mid-Atlantic region shrank.

The Dow Jones industrial average fell 57.59, or 0.6 percent, to 10,213.62. The Standard & Poor's 500 index fell 3.94, or 0.4 percent, to 1,071.69. The Nasdaq composite index rose 0.81, or 0.04 percent, to 2,179.76.

Traders' vacations have meant exceptionally low volume this month. The uncertainty about the economy has made those who are working hesitant to make big moves.

The unemployment rate remains at 9.5 percent, and analysts widely agree it needs to fall to lead to a stronger rebound.

In corporate news, Dell Inc. reported a better-than-expected profit Thursday, due largely to increased technology spending by businesses. However, sales in its consumer personal-computer division were flat compared with the same quarter last year, further evidence that shoppers are hesitant to buy new goods.

Hewlett-Packard Co. reported quarterly results that were in line with preliminary results it released earlier in the month. Its profit rose 6 percent. Unlike Dell, it had growth in its personal-computer sales.

HP fell 91 cents, or 2.2 percent, to $39.85. Dell rose 3 cents to $12.07.

Corporate mergers-and-acquisitions activity gave stocks a boost early this week but was overshadowed later by weak economic reports. Mergers-and-acquisitions activity is usually seen as a hopeful sign for the economy because it means companies are willing to spend money.

Benchmark crude for October delivery fell 97 cents to settle at $73.46 a barrel on the New York Mercantile Exchange. Oil prices have steadily dropped throughout August because of concerns that demand will drop if the global economic recovery slows.

Chevron fell 79 cents to $75.05. ConocoPhillips dropped 82 cents to $53.89.

Britain's FTSE 100 fell 0.3 percent, Germany's DAX index dropped 1.2 percent, and France's CAC-40 fell 1.3 percent. Japan's Nikkei stock average fell 2 percent.