North American stocks closed lower on Thursday, following a gain in U.S. jobless claims and a disappointing outlook from bellwether Cisco Systems Inc.
The Dow Jones industrial average closed at 10,319.95, down 58.88 points, or 0.6 per cent. The broader S&P 500 closed at 1083.61, down 5.86 points, or 0.5 per cent. In Canada, the S&P/TSX composite index closed at 11,523.60, down 58.61 points, or 0.5 per cent.
Cisco fell 10 per cent after the technology company on Wednesday evening delivered a disappointing full-year forecast - a move that also sent other technology stocks lower and contributed to feelings that the economic recovery is slowing. Indeed, Cisco's chief executive John Chambers warned that the company faced "unusual uncertainty," echoing a phrase used recently by Federal Reserve Chairman Ben Bernanke to describe the economic outlook.
As well, the U.S. Labour Department reported that initial jobless claims rose last week by 2,000, to 484,000 - the highest level since February and another sign that the unemployment situation isn't getting any better.
In Canada, energy stocks drove the benchmark index lower after the price of crude oil slipped to $75.74 (U.S.) a barrel, down $2.28. Suncor Energy Inc. fell 1.2 per cent and Canadian Natural Resources Ltd. fell 2.4 per cent.
However, Tim Hortons Inc. surged 6.2 per cent after the coffee and doughnut chain reported a 21 per cent gain in its second quarter earnings.