Dow and S&P fall on Exxon and weak economic data

By Steven C. Johnson

NEW YORK (Reuters) - Stocks fell on Thursday, led by Exxon Mobil after its earnings fell short of Wall Street's expectations and as disappointing economic data revived fears of a U.S. recession.

Even with Thursday's decline, the Dow and the Nasdaq finished the month higher, aided by the worst month for oil since December 2004. The S&P 500 finished the month down 1 percent.

Exxon Mobil Corp's (XOM.N) profit miss, coupled with a 2 percent slide in the price of oil, drove the energy giant's stock down nearly 5 percent. An index of energy shares .OIX fell 2.7 percent.

Government reports showing weaker-than-expected second-quarter growth and a rise in the number of Americans applying for jobless benefits soured market sentiment and left investors uneasy about the July payrolls report due on Friday.

Investors also unloaded shares of big manufacturers, including Caterpillar Inc (CAT.N), down 3.5 percent, and Boeing Co (BA.N), off 4.3 percent.

"Investors are on edge," said Alan Lancz, president of Alan B. Lancz & Associates Inc., an investment advisory firm, based in Toledo, Ohio. "This morning's economic numbers were disappointing. Unemployment is a concern."

The Dow Jones industrial average .DJI tumbled 205.67 points, or 1.78 percent, to 11,378.02. The Standard & Poor's 500 Index .SPX dropped 16.88 points, or 1.31 percent, to 1,267.38. The Nasdaq Composite Index .IXIC slipped 4.17 points, or 0.18 percent, to 2,325.55.

For the month, the Dow was up 0.25 percent, while the Nasdaq finished July up 1.42 percent. The S&P 500 lost 1 percent in July.