Official site of Tribune News serving Tomball, Magnolia and Waller

U.S. stocks fell Monday as evidence piled up that the global economic slowdown is dragging on Asia.

Japan's economy grew in the second quarter at a 1.4 percent annual rate, slower than many analysts had expected. Last week, China released dismal figures on retail sales and exports in July. Traders had hoped Beijing would roll out stimulus measures over the weekend. That did not happen.

The Dow Jones industrial average fell 61 points to 13,146 as of noon. The Standard & Poor's 500 index fell six to 1,400. The Nasdaq composite fell 12 to 3,008.

The S&P 500 had risen for six straight days before Monday, its longest rally since December 2010. The S&P 500 and Dow have also risen every week for the past five weeks. The S&P 500 last wrapped up a five-week climb in mid-March. The Dow hasn't done so since last October.

Slower growth in Asia worries investors because Asia's economic endurance has helped offset weakness in the U.S. and Europe in recent years. Exports from China and Japan are declining as Europe's economic woes hurt consumer confidence there.

"What's happened is the law of gravity is starting to hit," said Doug Cote, chief market strategist at ING Investment Management. Japan is volatile because it is still recovering from last year's massive earthquake and tsunami, he said, and China's growth is slowing sharply.

Yet stocks, bonds and most other investments are all up for the year, Cote noted. He said the markets have been "pricing in Armageddon when clearly things are much better than that." Cote expects stocks to continue their upward trend as fears about the global economy dissipate.

Most Asian and European markets closed lower. Stocks edged higher in Spain. Traders speculate that the European Central Bank will take a more active role in fighting the region's debt crisis by reducing borrowing costs for Spain, Italy and others.

Monetary authorities in the U.S. and China also are believed to be weighing plans to boost growth. Central banks have been hesitant so far to get involved with an economy that may be on the cusp of a rebound. They are mindful, however, of the effect that an achingly slow recovery has on businesses and consumers.

Traders sought out safer investments such as U.S. Treasurys. The price of the 10-year Treasury note rose, pushing its yield down to 1.64 percent from 1.66 percent late Friday.

China revealed Friday that export growth in July plunged to just 1 percent from 11.3 percent as recently as the prior month. That was well below forecasts of about 5 percent.

The lack of global demand is trimming revenue for U.S. corporations. Many are cutting costs to limit declines in net income.

Investors had divergent reactions to two major asset sales by energy giant BP:

— Tesoro Corp. rose after saying it will pay $2.5 billion cash for a California refinery, pipelines, storage terminals and Arco-branded retail outlets in the Southwest. Tesoro's stock jumped $3.33, or 9 percent, to $38.93. It was the biggest percentage gain in the S&P 500 index.

— Eagle Rock Energy Partners fell after agreeing to buy two BP gas processing plants in Texas for $227.5 million in cash. Its stock lost 25 cents, or 3 percent, to $8.71.

Among stocks making big moves Monday:

— Google rose after announcing that it would cut 20 percent of the staff at Motorola Mobility, the struggling mobile phone maker it acquired in May. Motorola hasn't had a hit product since it introduced the Razr in 2005. Google's shares added $10.58, or 2 percent, to $652.58.

— Sears Holdings Corp. shot up $2.19, or 4 percent, to $53.61. The department store chain announced plans to spin off its Hometown and Outlet stores and some hardware stores into a separate, public company.

Daniel Wagner can be reached at www.twitter.com/wagnerreports .

NEW YORK (AP) — Stocks are bouncing between small gains and losses on Wall Street following more signs that the U.S. economic recovery is advancing, albeit at a slow pace.

The Dow Jones industrial average was down two points at 13,170 just after noon on Wednesday. The broader S&P 500 index rose two points to 1,406, while the Nasdaq composite rose 12 points to 3,029.

U.S. industrial production increased last month as factories made more cars, computers and airplanes, according to the Federal Reserve.

It was a sign that manufacturing is recovering after a weak spring. Also, consumer prices were unchanged in July from June, as a small drop in energy costs offset slightly higher food prices. The consumer price index hasn't changed since March, which means that inflation is in check.

Lower inflation gives the Federal Reserve more leeway to launch new programs intended to rekindle the economy. The Fed signaled at a meeting in late July that it is ready to act if growth and hiring stays weak.

Recent signs point to some economic improvement in July. Employers created the most jobs in five months, while consumers spent a little more at stores after three months of declines. Though they were better, the economic data showed a very weak recovery and that the U.S. economy is just trudging along.

"We're in a period of very slow growth, though interest rates are low, and very little inflation," said David Kotok, chief investment officer at Cumberland Advisors.

It's left many investors wondering if the economy is fragile enough to create a sense of urgency among fiscal policy makers to act proactively. The slightly better outlook for the economy could prompt the Fed to hold off on taking action when its policy committee next meets in September.

The bond market is betting that the Fed is not likely to act. Investors have been selling low-risk U.S. government bonds, sending the yield on the benchmark 10-year Treasury note up to 1.81 percent Wednesday. That's up from 1.73 percent Tuesday and 1.66 percent late Monday.

"Unless the U.S. economy goes into a swoon and there is no pick up in retail sales and deterioration in jobs growth or major shocks from Europe and China, the Fed will not take any action for now," Kotok said.

In the last few weeks of the summer, trading volumes in the stock market have been low. Investors may also be holding off on taking aggressive positions ahead of a meeting of the U.S. Federal Reserve in Wyoming at the end of this month.

On Wednesday, the Dow traded within a range of just 53 points.

U.S. earnings were mixed.

Target rose $1.56 to $64.95 after the retailer increased its profit outlook for the year. Target is preparing its first expansion out of the U.S., into Canada.

Deere plummeted $5.51 to $74.62 after the agriculture machinery maker reported results that were well below Wall Street's expectations. The company attributed its poor results to a slowing global economy and the effects of a prolonged U.S. drought. Deere also cut its revenue forecast for the year.

Staples dropped $2.43 to $11.03 after the office and school supplies store said its income dropped 32 percent following weak sales in North America and Europe. The results fell short of analysts' expectations and the company cut its full-year earnings forecast.

Abercrombie & Fitch struggled to sell its preppy jeans and T-shirts in the previous quarter, but its results weren't as bad as analysts had forecast. The teen fashion leader also laid out plans for updating its fashions. The stock soared 9 percent, or $2.80, to $35.13.