The Dow Jones industrial average fell 18.47 to 5,624.71.

Decliners led advancers by 1,316 to 1,005 on the New York Stock Exchange. NYSE volume totaled 314.96 million shares vs. 428.37 million in the previous session.

Broad-market indexes continued to struggle too, taking their cue from the bond market several times during the day.

The NYSE composite fell 0.56 to 358.27 and the S&P 500 index was off 1.44 at 667.68.

The Nasdaq composite fell 4.37 to 1,239.06 and the American Stock Exchange's market value index slipped 2.22 to 608.71.

Bonds started the day lower, sending long-term interest rates above 7 percent, with traders remaining jittery about inflation after a recent flurry of mixed economic signals before this week's report on May employment.

Bonds reversed course in the morning after new economic data indicated that U.S. manufacturing weakened even in May even though the overall economy grew for the fourth straight month.

But much of the optimism generated by the purchasing managers report evaporated after Chrysler reported strong car and truck sales in May, suggesting strong consumer demand and confidence.

Bonds headed lower again with the yield on the 30-year Treasury moving above 7 percent.