US Dow slides 146 points

Stocks fell Thursday following disappointing forecasts from retailers and concern about the government's financial overhaul package.

Stocks fell Thursday following disappointing forecasts from retailers and concern about the government8217;s financial overhaul package.

The Dow Jones industrial average lost 146 points after edging higher Wednesday. Broader indexes dropped for a fourth straight day.

Downbeat forecasts from retailers raised concerns that high unemployment and weak consumer spending would stall an economic rebound. Athletic apparel maker Nike Inc. dropped 4 percent after saying higher costs could hurt earnings. Bed Bath amp; Beyond fell 2.4 percent after the home goods retailer8217;s second-quarter earnings forecast missed expectations.

Dell Inc. lost 6.4 percent after the computer maker8217;s fiscal year forecast failed to top expectations,as some analysts had hoed.

Meanwhile,financial stocks fell after Congress continued working on a bill to overhaul regulation of the industry. Democratic leaders hoped to reconcile the House and Senate bills by Thursday evening so President Barack Obama can have a deal in place by the time he meets with the Group of 20 nations this weekend in Toronto.

Traders were concerned that some provisions of the bill would cut into bank profits. Large banks were lobbying to strike a proposal that would make the industry cover costs to dismantle the mortgage giants Fannie Mae and Freddie Mac. Bank of America Corp. dropped 2.7 percent and JPMorgan Chase amp; Co. lost 2.2 percent.

Stocks of health care and consumer products companies rose,another sign that investors are anxious and looking for investments considered reliable in a weak economy.

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Economic news didn8217;t help. The government said initial claims for unemployment benefits fell last week but remained above the level that would signal employers are ramping up hiring. A second report indicated that orders for durable goods fell last month for the first time in six months. Orders for big-ticket goods fell 1.1 percent in May. Analysts predicted a 1.3 percent drop.

The latest reports showed there are 8220;substantive holes in the economic recovery story,8221; said Tom Samuels,portfolio manager of the Palantir Fund in Houston.

According to preliminary calculations,the Dow fell 145.64,or 1.4 percent,to 10,152.80. The Standard amp; Poor8217;s 500 index fell 18.35,or 1.7 percent,to 1,073.69,while the Nasdaq composite index fell 36.81,1.6 percent,to 2,217.42.