NEW YORK — Wall Street retreated sharply Monday on more signs of economic weakness and on executive shake-ups at two major banks — reminders of the ongoing fallout from the credit crisis.

The Dow Jones industrial average fell more than 100 points.

Two economic reports indicated that the economy is still struggling. As expected, the Institute for Supply Management's manufacturing index for May showed its fourth straight monthly decline, while the Commerce Department said construction spending dipped in April for the sixth time in seven months due to a drop in home construction.

Meanwhile, the market drew little comfort from news that Wachovia Corp. chief executive Ken Thompson has been forced out and that Washington Mutual Inc.'s chief executive Kerry Killinger will be replaced as chairman.

Thompson has become the third CEO of a major financial institution to lose the top job as a result of the credit crisis. His departure from the nation's fourth-largest bank was not entirely unexpected, after being stripped of his chairman title just about a month ago. Still, his stepping down was a reminder that the financial system is still contending with the aftermath of the nation's prolonged credit problems.

In mid-morning trading, the Dow Jones industrial average fell 119.36, or 0.94 percent, to 12,518.96.

Broader stock indicators also dropped. The Standard & Poor's 500 index fell 12.83, or 0.92 percent, to 1,387.55. The Nasdaq composite index fell 29.16, or 1.16 percent, to 2,493.50.

Wachovia shares fell 81 cents, or 3.5 percent, to $23.00, and WaMu shares traded flat at $9.02.

Shares of ImClone Systems Inc. weighed on the Nasdaq, falling $2.50, or 5.7 percent, to $41.08 on disappointment over trial data for its drug Erbitux as a treatment for lung cancer and colorectal cancer.

Government bonds rose as stocks pulled back. The 10-year Treasury note's yield, which moves opposite its price, fell to 4.04 percent from 4.06 percent late Friday.

The dollar traded mixed against other major currencies, while gold prices edged higher.

Last week, the stock market rose in reaction to a dip in oil prices, a better-than-expected reading on durable goods orders and an upwardly revised estimate of first-quarter gross domestic product. The Dow rose 1.27 percent, the S&P 500 rose 1.78 percent, and the Nasdaq rose 3.19 percent.

But investors remain unsure about the direction of the economy and inflation.

Crude oil prices are under especially close scrutiny. Even after its recent retreat, the price of oil is up significantly for the year and buoying energy costs for consumers.

Light, sweet crude fell $1.33 to $126.02 a barrel Monday on the New York Mercantile Exchange.

Wall Street will be monitoring a speech later Monday in Jacksonville, Fla., on the economy by Atlanta Federal Reserve President Dennis Lockhart for signals about whether the Fed plans to keep interest rates on hold.

Meanwhile, the Financial Times reported that the private equity firm Cerberus Capital Management has sold more than half its equity in its deals for GMAC and Chrysler to other investors.

Declining issues outnumbered advancers by about 3 to 1 on the New York Stock Exchange, where volume came to 209.4 million shares.

The Russell 2000 index of smaller companies fell 9.68, or 1.29 percent, to 738.60.

Overseas, Japan's Nikkei stock average closed up 0.71 percent. In afternoon trading, Britain's FTSE 100 fell 0.82 percent, Germany's DAX index fell 0.89 percent, and France's CAC-40 fell 1.34 percent.