US stocks fall on global economic worries

NEW YORK (AP) — More evidence of a slowing global economy sent stocks falling today and threatened to end the market's three-day rally.

Germany's economy stalled last quarter and dragged down growth for Europe. In the U.S., reports painted a mixed economic picture: Housing remains weak, but factory output rose last month at its fastest pace since the March earthquake in Japan disrupted global manufacturing.

The Dow Jones industrial average fell more than 120 points in the first half hour of trading before paring most of its losses by noon. Stocks then quickly resumed their decline after the leaders of France and Germany tried to calm worries about Europe's debt problems by pushing for long-term political solutions instead of immediate financial measures like a single European bond.

The Dow fell 176 points, or 1.5 percent, to 11,307 at 1:06 p.m. The Standard & Poor's 500 index fell 22 or 1.9 percent, to 1,182. The Nasdaq composite fell 57, or 2.2 percent, to 2,497.