Stocks fell Wednesday, ending a four-session advance, on mixed reports on the U.S. economy and cautionary comments from Federal Reserve (Fed) Chairman Ben Bernanke. Citing the impact of the weak labor market and the decline in household wealth, the U.S. central bank chief told a congressional committee that while data show the pace of the recession is slowing, the economy is far from healthy. He also warned that Congress and the Obama administration need to plan a strategy to reduce record-high budget deficits. In economic news, the U.S. service sector continued to shrink, but at a slower pace, a private organization reported. Factory orders rose less than expected, the government said. Two reports showed the pace of job losses could be slowing. Private-sector employers cut fewer jobs in May than the previous month. A separate report showed the number of job cuts announced last month declined for the fourth consecutive month. Light sweet crude oil for July delivery fell $2.43 to $66.12 a barrel on the New York Mercantile Exchange. The U.S. dollar gained versus the euro and the yen. The Dow Jones industrial average fell 65.63, or 0.75 percent, to 8,675.24. Twenty-six of the index's 30 components fell, led by oil companies Exxon Mobil and Chevron, which declined along with the price of oil. The broader Standard & Poor's 500 index fell 12.98, or 1.4 percent, to 931.76. The technology-heavy Nasdaq composite index fell 10.88, or 0.6 percent, to 1,825.92. The New York Stock Exchange composite index fell 148.97 to 6,033.90. The American Stock Exchange composite index fell 48.07 to 1,613.58. And the Russell 2000 index fell 3.92 to 522.71.
