Wall St falls on signs of economic slowdown

US stocks fell on Thursday following a rise in weekly jobless claims that added to concerns about an impending economic slowdown, while Goldman Sachs lowered its forecast for the S&P 500 index.

Initial jobless claims unexpectedly rose in the latest week and remained at elevated levels. Gross domestic product rose at an annual rate of 1.8% in the first quarter, unchanged from the previous estimate and down from analysts' expectations for more robust growth.

In a sign of rising concern about the economic outlook, Goldman Sachs cut its year-end target for the S&P 500 index to 1,450 from 1,500, citing margin concerns. The lower target represents upside of almost 10% from current levels.

"We have seen a string of weak economic reports," said Scott Marseilles, chief technical market strategist at Wells Fargo Advisors in St Louis. "You have got that with the renewed concerns about Greece."

Unsettling markets further, the International Monetary Fund cannot continue to lend to Greece until it has financing assurances from EU partner countries for the bailout program, an IMF spokeswoman said.

The Dow Jones industrial average dropped 70.39 points, or 0.57%, to 12,324.27. The Standard & Poor's 500 Index dropped 5.52 points, or 0.42%, to 1,314.95. The Nasdaq Composite Index dropped 1.65 points, or 0.06%, to 2,759.73.

Hedge fund manager David Einhorn called for Steve Ballmer, the chief executive of Microsoft Corp, to step down. Shares of the Dow component rose 2% to USD 24.68.

Tiffany & Co shares rose 8.9% to USD 76.24 after the luxury retailer reported its first-quarter results and raised its outlook.