NEW YORK -- Stocks fell Thursday after a regional Federal Reserve report showed a sharp decline in manufacturing activity and as investors grew concerned that downgrades of key bond insurers could trigger further trouble with souring debt.

Minutes of meetings show that six of the 12 regional banks opposed the decision last month. Half of the 12 regional Federal Reserve Banks opposed the central bank's decision last month to lower by a quarter of a point the rate paid by banks on loans from the Fed.