U.S. stocks fall on worries of inflation

U.S. stocks fell Thursday while a big jump in labor costs raised worries over inflation, although world crude oil prices plummeted by more than one dollar for the second day.

The U.S. Labor Department said Thursday labor costs rose at a 3. 5 percent pace, the fastest in a year. The number of first-time jobless claims dropped by 11,000 last week to 273,000. The four- week moving average of claims fell to its lowest level in five and half years. The four-week moving average of claims fell to its lowest level in the period.

World crude oil prices plummeted by more than one dollar per barrel for the second straight day Thursday while the IAEA calmed down the worries over the sanctions against Iran. New York's main contract, light sweet crude for delivery in March, dropped 1.88

dollars to settle at 64.68 dollars a barrel.

Among stocks on focus, diversified manufacturer Tyco International Ltd. fell 1.30 dollars, or 5 percent, to 24.80 dollars after its quarterly profits fell 22 percent, due in part to one-time charges related to discontinued operations.

At the closing time, the Dow Jones industrial average dropped 101.97 points, or 0.93 percent, to 10,851.98. The Standard & Poor's 500 Index fell 11.62 points, or 0.91 percent, to 1,270.84. The Nasdaq Composite Index slid 28.99 points, or 1.25 percent, to 2, 281.57.

Declining stocks outnumbered advancing ones by a ratio of 7 to 3 on the NYSE and by about 2 to 1 on Nasdaq.

Source: Xinhua