Stocks fall after Philly manufacturing index drops

NEW YORK (AP) — Stocks fell today after a plunge in the Philadelphia Federal Reserve's index of regional manufacturing raised concerns about the economy.

The Dow Jones industrial average fell about 70 points in morning trading. Broader indexes also dropped.

The Philly Fed said manufacturing continued to expand in June but at a slower pace than in May. Its index of manufacturing activity dropped to 8 from 21.4 the month before. Traders are concerned that the report signals that a recovery is fading in one of the strongest parts of the economy.

The disappointing manufacturing numbers followed the government's report that the number of people putting in new claims for unemployment benefits rose unexpectedly last week

Initial claims for jobless benefits increased by 12,000 to a seasonally adjusted 472,000. That's the highest level in a month and comes after three straight weeks of declines. Economists had forecast another drop.