Stocks fall as caution returns, Dow below 10,000

Stocks fell Thursday after early gains from a better report on jobless claims ebbed. The Dow Jones industrial average closed below 10,000 for the first time since early July.

The Dow lost 74 points, having been up as much as 45 earlier.

The market has struggled to hold on to gains in recent trading as many investors remain unconvinced that the economic recovery will hold.

Stocks have been on a generally declining trend in August after charging ahead in July. A bevy of poor indicators on the economy, especially weak home sales, has pierced a sense of optimism brought about by a series of strong corporate earnings reports the month before. The Dow has lost ground in five of the past six trading sessions and has shed 430 points over that time.

The market enjoyed a brief reprieve from that malaise early Thursday thanks to an encouraging sign on the job market. The Labor Department reported that first-time claims for jobless benefits fell last week after three straight weekly increases.

Now, it's up to Ben Bernanke to provide the next clues on the economy. The Federal Reserve chairman is delivering a speech early today that investors hope will shed light on how weak the U.S. economy really is and whether the Fed may take more steps to revive it.

The Dow fell 74.25, or 0.7 percent, to 9,985.81. The Dow had traded below 10,000 several times this week, but hadn't closed below that level since July 6. Broader market barometers also fell. The Standard & Poor's 500 fell 8.11, or 0.8 percent, to 1,047.22, while the Nasdaq fell 22.85, or 1.1 percent, to 2,118.69.

- AP