Stocks zigzag after weak reading on manufacturing

NEW YORK (AP) — Stocks are trading in a tight range as investors worry about trouble spots in the economy.

Stocks are zigzagging Thursday following a Philadelphia Federal Reserve report that regional manufacturing conditions weakened more than expected.

Investors are also cautious after small business lender CIT Group Inc. said negotiations with regulators about a rescue broke off. That is hurting financial stocks as traders worry that CIT could file for bankruptcy.

Stocks have surged this week on upbeat earnings reports and forecasts so the market's pause isn't surprising.

At midday, the Dow Jones industrial average is down 2 to 8,614. The Standard & Poor's 500 index is down 3 to 930, and the Nasdaq composite index is up 1 to 1,864.