Discouraging day for US stocks

A string of reminders that the US economy is still struggling, as well as disappointing earnings at Exxon Mobil upset investors today and pushed stocks sharply lower.

The Dow Jones industrials tumbled nearly 230 points, its first triple-digit loss in nearly two weeks.

The discouraging economic data a drop in construction spending and a weak reading of national business activity came a day after an unexpectedly steep decline in gross domestic product in the second-quarter.

The losses also came as investors were beginning to feel that the market had suffered its worst days and that prices were low enough for them to start buying again.

‘‘You give them a little bit of hope and now it looks like it is being jerked away again,’’ said Richard Dickson, a technical analyst at Hilliard Lyons.

The Dow closed down 229.97, or 2.6%, at 8,506.62.

It was the blue chip index’s first triple digit decline since July 22 when it fell 234. Since that loss, the Dow had two 400-plus surges 488.95, its second-biggest daily point gain yet, on July 24, and 447.49 on Monday, its third-largest daily point gain. Those stunning advances were mostly responsible for a four-session advance of 1,009.

The broader market also pulled back. The Nasdaq composite index dropped 48.10, or 3.6%, to 1,280.16. The Standard & Poor’s 500 index fell 27.06, or 3%, to 884.56.

Today’s decline built on more than 10 weeks of selling based on fears about the economy and a loss of confidence in corporate America. The Securities and Exchange Commission is investigating an array of energy and telecommunications companies and their executives because of deceptive accounting practices.

Investors were disheartened by two economic reports indicating that the economy is still weak. Analysts said the reports also increased concerns that the economy, which had appeared to be recovering, has instead slid into a deeper recession, called a double-dip.

‘‘There are worries now that we are in a double-dip (recession) ... If that is the case, you have a market that is still pretty richly valued,’’ Dickson said.

The Commerce Department said construction spending dipped 2.2% in June, missing analysts’ expectations for a 0.3% rise.

And the Institute for Supply Management said its gauge of business activity stood at 50.5 in July, well short of the 55 reading analysts were anticipating.

Oil stocks were among the market’s biggest losers with Exxon Mobil, a Dow stock, falling dlrs 2.76 to dlrs 34 on second-quarter earnings that missed analysts’ expectations by 7 cents a share. Disappointing profits also pulled down Royal Dutch, which slid dlrs 3.49 to dlrs 42.21.

Financial issues suffered from a Merrill Lynch downgrade of Dow industrial American Express, which itself fell 93 cents to dlrs 34.33.

Technology also contributed to the market’s decline. Software maker Adobe Systems plunged nearly 30%, down dlrs 7.13 at dlrs 16.83, after lowering its third-quarter earnings and revenue estimates. Additionally, several brokerages, including UBS Warburg, Goldman Sachs and Merrill Lynch, downgraded Adobe shares.

Other tech losers included IBM, down dlrs 2.45 at dlrs 67.95, and software maker Oracle, off 34 cents at dlrs 9.67.

Declining issues outnumbered advancers slightly more than 3 to 2 on the New York Stock Exchange. Volume was moderate.

The Russell 2000 index, which tracks smaller company stocks, fell 3.22, or 0.8%, to 389.20.