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NEW YORK – Stocks are falling after another series of disappointing reports made investors more pessimistic about the economy.

The Dow Jones industrial average is down more than 75 points Thursday, likely ending its seven-day winning streak. Interest rates are tumbling as investors worried about the economy snapped up safe Treasurys.

A day after the Federal Reserve issued a slightly more bleak outlook on the economy, two regional reports pointed to a slowing in manufacturing activity in the Northeast.

The Dow Jones industrial average is down 75.75, or 0.7 percent, at 10,290.97. The Standard & Poor's 500 index is down 8.70, or 0.8 percent, at 1,086.47, while the Nasdaq composite index is down 15.95, or 0.8 percent, at 2,233.89.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) — Stocks fell Thursday after another series of disappointing reports made investors more pessimistic about the economy.

The Dow Jones industrial average fell more than 80 points, likely ending its seven-day winning streak, while all the major indexes were down moderately. Interest rates surged in the Treasury markets as investors worried about the economy went in search of safe investments. The yield on the 10-year Treasury note dropped below 3 percent.

A day after the Federal Reserve issued a slightly more bleak outlook on the economy, two regional reports pointed to a slowing in manufacturing activity in the Northeast. Meanwhile, the Fed reported modest growth in industrial output nationwide. And the Labor Department said that first-time claims for unemployment benefits fell last week, but that was largely due to seasonal factors.

"We've hit a soft spot," Howard Ward, chief investment officer at GAMCO Growth Fund, said of the economic recovery. "The question is, are we starting to already improve or are we still falling down."

The disappointing manufacturing reports, which followed a weeklong stock rally, made the market "susceptible to profit taking," Ward said.

There appeared to be a shift in investors' view of the economy. They had been upbeat over the past week on more positive economic signs, in particular forecasts from companies including Intel Corp. and Alcoa Inc. But the latest disappointing numbers now seem to be dictating investors' moves, and analysts questioned whether investors would start buying again if companies keep reporting strong earnings and outlooks.

Industrial companies like Caterpillar Inc., General Electric Co. and United Technologies Corp. all fell after the weak manufacturing reports.

JPMorgan Chase & Co., the first big bank to report its second-quarter earnings, said it had set aside less money to cover losses on failed loans. That is a sign that mortgage and loan defaults may be moderating. But CEO Jamie Dimon kept a cautious tone about future economic growth.

"Earnings are strong," said Sandy Mehta, principal and chief investment officer of Value Investment Principals. "But the underlying economy is not as strong."

In late morning trading, the Dow Jones industrial average fell 86.12, or 0.8 percent, to 10,279.99. The Standard & Poor's 500 index fell 9.71, or 0.9 percent, to 1,085.46, while the Nasdaq composite index fell 20.13, or 0.9 percent, to 2,229.71.

About four stocks fell for every one that rose on the New York Stock Exchange where volume came to 315 million shares.

Bond prices rose as investors sought safety the safety of government securities after the mixed economic reports. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.99 percent from 3.05 percent late Wednesday.

JPMorgan Chase fell 58 cents to $39.77. Caterpillar fell 97 cents to $65.73, while GE dropped 15 cents to $15.05. United Technologies fell 53 cents to $67.48.

The steep drops reported Thursday in the Empire State and Philadelphia Fed Manufacturing indexes dented optimism about the manufacturing industry, which had shown the most consistent growth coming out of the recession.

The Empire State index fell to 5.08, well below the 18.50 economists had predicted and the 19.57 reported last month. The Philadelphia Fed index dropped to 5.1 for July. Economists had predicted it would rise to 10.0.

The Fed's report on industrial production showed output at the nation's factories, mines and utilities rose by 0.1 percent in June, better than the 0.1 percent drop economists forecast.

Meanwhile, the Labor Department said initial claims for jobless benefits fell by 29,000 to a seasonally adjusted 429,000, the lowest level since August 2008. Economists polled by Thomson Reuters had predicted claims would drop to 450,000.

However, the claims could be skewed because General Motors and other manufacturers skipped their usual July shutdowns. Normally that would lead to temporary seasonal layoffs, which did not show up in the latest figures.

The Dow eked out a gain of 4 points Wednesday to extend its winning streak to seven days. However, the S&P 500 snapped its run of gains by falling less than 1 point.

The euro climbed above $1.28 for the first time in more than two months Thursday as investors worried about the strength in the U.S.

Overseas, Britain's FTSE 100 fell 1.2 percent, Germany's DAX index fell 1.3 percent, and France's CAC-40 fell 1.5 percent. Japan's Nikkei stock average fell 1.1 percent.