Wall Street: Stocks slide after signs of subdued recovery

Stocks tumble on signs of subdued recovery

NEW YORK Signs of a subdued economic recovery sent investors out of stocks yesterday and in search of safer assets like the dollar.

Major indexes tumbled about 1 percent, including the Dow Jones industrial average, which lost 94 points but ended well off its low. Energy and material stocks logged some of the biggest losses as a jump in the dollar sent commodity prices tumbling. Meanwhile, an analyst's downgrade of the chip industry pulled technology shares lower.

Tech stocks could get hit again today following a report from Dell Inc. that sales of its computers to big businesses remain sluggish. After the closing bell, the company posted quarterly revenue and profits that fell short of analysts' forecasts. Dell shares slid 6 percent in after-hours trading.

As stocks fell, investors flocked to the dollar and Treasurys. The yield on the three-month T-bill tumbled to its lowest level since December. The Chicago Board Options Exchange's Volatility Index rose more than 4 percent.

After amassing significant gains during an eight-month rally in stocks, investors are hesitant to take on too many risks as the year ends, worried that the economy's rebound might not be sustainable.

"Large money managers . . . are looking to protect their gains and are shifting assets," said Adam Gould, senior portfolio manager at Direxion Funds in New York.

The Dow fell 93.87, or 0.9 percent, to 10,332.44.