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Stocks Slide After Weak ISM, Housing Reports

Stocks got the new quarter off to a weak start Thursday after disappointing reports on housing, manufacturing and jobless claims.

The ISM reported its gauge of manufacturing activitydropped to 56.2in June from 59.7 in May; economists had expected a smaller dip to 59.

Pending-home sales plunged 30 percentin May from April, more than twice the 13-percent decline expected. Construction spending fell 0.2 percent, less than expected.

The Dow Jones Industrial Average was down more than 100 points after the housing and manufacturing reports.

This comes after the Dow ended the second quarter down 10 percent, the worst quarter since the first quarter of 2009 — and the first quarterly decline since then.

Earlier, a report showed initial claims for unemployment benefits rose by 13,000 last week to to 472,000; economists had expected claims to fall. Separate reports showed planned layoffs rosein June and private companies added just 13,000 jobs in June, well below expectations.

The reports are closely watched ahead of the government's jobs report, due out on Friday. Economists expect to see 110,000 jobs were lost from nonfarm payrolls in June, according to the latest Reuters survey, which would snap a five-month streak of gains.

Global concerns added to the pressure on the market after a report showed Chinese manufacturing growth slowed in June and as the S&P and Moody's warned of a possible credit downgrade on Spain.

Spain completed a 3.5 billion euros ($4.3 billion) auction Thursday and demand was weaker than at prior auctions. France also sold nearly 7.5 billion euros in government bonds.

Famous investor Jim Rogers told CNBC a bubble was forming in bond markets and inflation is already here.

Citigroup rose after the U.S. Treasury said it it sold 1.1 billion shares.

Shares of electric-car maker Tesla rose, after jumping 40 percent on their debut and then slipping a little on Tuesday.

Still to come: U.S. automakers will report their June sales figures, starting with General Motors, which is expected at about 10:45 am. Industry analysts estimate that June sales came in at an 11.3 million vehicle annual pace, down from May's 11.6 million rate.

In political news, the House has passed the financial regulation reform bill, but the Senate will not be dealing with the legislation until after the July 4th holiday recess.

And a bill in the Senate to extend jobless benefits has been successfully filibustered by GOP lawmakers, but its passage seems certain next month once a replacement is named for Democratic Senator Robert Byrd, who passed away earlier this week.

Toyota is considering a possible recall of up to 270,000 cars to eliminate possible engine failure.