Stocks extend declines after manufacturing report

By TIM PARADIS
Associated Press

NEW YORK October 01, 2008 10:44 am

— Stocks are extending their declines as a weaker-than-expected reading on the manufacturing sector is fanning Wall Street's worries about the health of the economy.
The report from the Institute for Supply Management reveals a troubling drop in new orders. The news is raising concerns about the economy while investors await a possible Senate vote on the financial bailout package.
The Institute for Supply Management's index fell to 43.5 in September from 49.9 in August. Wall Street had expected the trade group's index would come in at 49.5, according to economists polled by Thomson/IFR.
The Dow Jones industrials are down about 172 at the 10,678 level after having been about 100 ahead of the report.