US stocks fell on Thursday despite data that showed the number of people filing for jobless benefits fell to the lowest level in about 17 months. While shares slipped in the last trading session of 2009, the three major US stock indexes were on track to post their best yearly gains since 2003. Initial claims for US unemployment insurance benefits fell 22,000 to a seasonally adjusted 432,000 in the latest week, according to the Labour Department.
While a drop in jobless claims is a bullish sign for the crucial labour market, some analysts cautioned that the holidays may have affected the data. "The number is positive, but there are fears that with temporary and holiday hiring, it may not be as good as it seems," said Dan Cook, senior market analyst at IG Markets in Chicago. "We also remain above 400,000, which is very high."
Volume is expected to be light throughout the day, with many investors out for the holidays. US financial markets will be closed on Friday for New Year's Day. The Dow Jones industrial average fell 59.78 points, or 0.57 percent, to 10,488.73. The Standard & Poor's 500 Index shed 4.52 points, or 0.40 percent, to 1,121.90. The Nasdaq Composite Index slid 8.14 points, or 0.36 percent, to 2,283.14.
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