Stocks erase earlier gains, end down

Stocks closed lower Thursday, after rising earlier in the day on solid factory orders and strong earnings from U.S. manufacturers. They drifted lower after weaker reports on housing and economic growth tempered traders’ optimism.

The Dow Jones industrial average closed down 22 points, or 0.2 percent, at 12,735. It had risen as much as 85 points earlier, putting it above its post-crisis high close of 12,810, reached in April 2011.

The S&P 500 closed down 8 points, or 0.6 percent, at 1,318. The Nasdaq closed down 13 points, or 0.5 percent, at 2,805.

Falling stocks slightly outnumbered rising ones on the New York Stock Exchange. Volume was above average at 4.5 billion shares.