U.S. Stocks Resume Slide on Gain in Oil Prices, Economy Concern (Michael Patterson)

  U.S. stocks resumed their weeklong slide after oil prices climbed and a private report showed companies added the fewest jobs since July 2003.

  March 7 (Bloomberg) -- U.S. stocks resumed their weeklong slide after oil prices climbed and a private report showed companies added the fewest jobs since July 2003.

  AT&T Inc. led the Standard & Poor's 500 Index to its fourth decline in five days. Semiconductor companies National Semiconductor Corp. and LSI Logic Corp. dropped the most in the benchmark. American Eagle Outfitters Inc. helped push the Nasdaq Composite Index lower after the teen clothing chain forecast earnings that trailed analysts' estimates.

  ADP Employer Services said employers added 57,000 jobs last month following a January gain of 121,000, signaling a slowdown in the economy stemming from downturns in housing and manufacturing may be discouraging companies from hiring. The Federal Reserve will release later today its report on regional economic conditions. Data yesterday signaled manufacturing and housing remain drags on the economy even as labor costs rise.

  ``Investors, in general, are thinking that the economy is slowing down and perhaps the risk of recession has increased,'' said Charles Crane, who helps manage $265 million at Scotsman Capital Management in New York. ``At the same time, the issue of inflation doesn't seem to want to go away, leading those same investors to conclude that the Fed may not ease in 2007.''

  The S&P 500 lost 4.27, or 0.3 percent, to 1391.14 as of 11:11 a.m. in New York. The Nasdaq dropped 11.22, or 0.5 percent, to 2373.92. The Dow Jones Industrial Average slipped 16.99, or 0.1 percent, to 12,190.60.

  Stocks yesterday snapped a three-day slump to post their biggest gains since July after Treasury Secretary Henry Paulson eased concern that rising mortgage defaults will undermine the economy. The S&P 500 has fallen 4.4 percent from a six-year high on Feb. 20.

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