Markets fall on economic worries

North American markets sold off Thursday on economic worries and earnings disappointments.

Traders were disappointed as the number of newly laid-off U.S. workers claiming unemployment benefits fell less than expected last week, dropping by 8,000 to a seasonally adjusted 470,000, and durable goods orders edged up only a slight 0.3 per cent in December.

Investors also worried about the effects of a proposed U.S. bank tax, to compensate taxpayers for the financial bailout, on the economic recovery.

Most markets were down by more than one per cent for much of the day before cutting their losses by the close.

In Toronto, the S&P/TSX composite index ended down 69.91 points at 11,274.20.

In New York, the Dow Jones industrial average finished off 115.70 points to 10,120.46. The Nasdaq composite index declined close to two per cent, or 42.41 points, to 2,179.00 while the S&P 500 index fell 12.97 points to 1,084.53.

The Canadian dollar ended the day down .13 of a cent to 93.79 cents US. The February bullion contract closed on the New York Mercantile Exchange down 90 cents US to $1,083.60 an ounce. February crude on the Nymex finished down three cents to $73.64 US a barrel on top of two previous days of decline.