Stocks sink on worries about economic recovery

By STAN CHOE

NEW YORK

Stocks are tumbling in midday trading on more signs that the economy is slowing.

Private employers added 38,000 jobs in May, down from 177,000 in April, payroll processor ADP said. It's the weakest result since September.

Even manufacturing, one of the economy's bright spots since the recession ended, is losing momentum. Manufacturing grew last month at its slowest pace since September 2009, the Institute for Supply Management reported Wednesday.

The Dow Jones industrial average is down 142 points to 12,427. The S&P 500 is down 14 to 1,331, and the Nasdaq is down 24 to 2,811.

The yield on the 10-year Treasury note is below 3 percent for the first time in 2011. Treasury yields fall when their prices rise, which happens when investors seek out safer investments.