Investing.com - U.S. stocks closed lower Thursday, as weak U.S data pressured risk sentiment into bearish mode for the session
At the close of trade, the Dow Jones Industrial Average fell 0.23%, the S&P 500 dropped 0.17%, while the Nasdaq gave back 0.35%.
Igniting the bearish mood, he number of people who filed for unemployment assistance in the U.S. surged more-than-expected last week, official data showed on Thursday.
In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 10 rose by 78,000 to a seasonally adjusted 439,000, compared to expectations for an increase of 14,000 to 375,000.
Jobless claims for the preceding week were revised up to 361,000 from a previously reported 355,000,
Continuing jobless claims in the week ended November 3 rose to 3.334 million from a revised 3.163 million. Analysts had expected continuing claims to rise to 3.210 million.
The four-week moving average was 383,750, an increase of 11,750 from the previous week's revised average of 372,000.
Meanwhile, a speech by Federal Reserve Chairman Ben Bernanke was to be closely watched for any indications on the future possible direction of monetary policy.
Shares in retail giants Wal-Mart and Target were expected to be active during Thursday’s trading session, with both firms reporting earnings.
Computer maker Dell saw shares gain 0.4% as the company was also due to release corporate earnings.
Across the Atlantic, European stock markets were broadly lower, after data showed the euro zone’s economy contracted in the third quarter, tipping the region into its second recession since the 2008 financial crisis.
The EURO STOXX 50 dropped 0.2%, France’s CAC 40 declined 0.2%, Germany's DAX retreated 0.55%, while Britain's FTSE 100 lost 0.4%.
Official data released earlier showed that the euro zone’s economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Year-on-year, euro zone gross domestic product fell 0.6% compared to a year earlier after contracting at a rate of 0.5% in the previous quarter.
The data came after reports showed that the pace of Germany's economic growth slowed to 0.2% in the third quarter from a 0.3% increase in the previous quarter, while France's economy’s expanded 0.2%, following contraction of 0.1% in the previous quarter.
Data also showed Spain's economy contracted 0.3%, while Italy’s economy shrank 0.2% in the third quarter.
Concerns over the health of triple-AAA Austria and the Netherlands intensified after data showed Austria’s economy shrank 0.1% in the three months to September, while the Dutch economy contracted by an alarming 1.1%. Economists had only expected a decline of 0.2%.
At the close of European trade, the EURO STOXX 50 fell 0.45%, France’s CAC 40 gave back 0.52%, while Germany’s DAX 30 dropped 0.82%.
Investors are awaiting the U.S. TIC long term purchases and industrial production on Friday.