US stocks close down

Stocks pulled back today after the Commerce Department reported that the US economy grew at the slowest pace in more than three years and stirred concern that a desired soft landing in the economy might prove elusive.

Investors have bid up stocks sharply in October on the notion that while the economy is slowing, but not in a way that would threaten corporate profits and consumer spending. Investors are also counting on a gradual slowdown to reduce the threat of inflation and convince the Federal Reserve to lower short-term interest rates.

While investors expected today’s advance reading on gross domestic product would show slowing growth, the report underscored concern that a cooling housing market could spill over into other parts of the economy.

“I think that the market actually was poised for profit-taking and consolidation,” said Quincy Krosby, chief investment strategist at The Hartford. She contends the GDP report gave investors an excuse to catch their breath after the recent run-up and called the pullback a healthy pause.

The Dow Jones industrial average was down 73.40, or 0.6%, at 12,090.26. The Dow Jones industrials achieved a new high close in each of previous four sessions, having also done so in 13 of the previous 18 sessions.

Broader stock indicators moved lower today. The Standard & Poor’s 500 index was down 11.74, or 0.85%, at 1,377.34, and the tech-heavy Nasdaq composite index fell 28.48, or 1.20%, to 2,350.62. Technology stocks fell this afternoon following a report from Goldman Sachs that warned of weakness in orders for computer parts.

Overall, all the major indices showed gains for the week.