US stocks fell on Thursday, stalling a four-day run-up in the S&P and the Nasdaq, as investors worried about a sharply worsening economy, sending shares of bellwethers, including Boeing, tumbling. Insurer Allstate plunged 21 percent after it posted a $1.1 billion quarterly loss.
Boeing, down more than 6 percent, was the biggest drag on the Dow a day after the jet plane maker posted a disappointing outlook and announced an order cancellation. Government reports showed the amount of people filing for unemployment benefits hit a record in mid-January, while orders for durable goods dropped for the fifth straight month in December and new home sales fell to a record low.
The Dow Jones industrial average slid 206.05 points, or 2.46 percent, to 8,169.40. The Standard & Poor's 500 Index shed 25.87 points, or 2.96 percent, to 848.22. The Nasdaq Composite Index declined 47.62 points, or 3.06 percent, to 1,510.72. Of the Dow's 30 components, all were in the red except 3M, up 2.7 percent at $56.94 on hopes the diversified manufacturer is well-positioned for growth in late 2009.
Boeing's stock lost 6.2 percent to $40.55 and ranked as the heaviest weight on the Dow industrials. Allstate tumbled 21 percent to $23.42 and contributed to a 5.7 percent drop in the S&P financial index.