Wall Street slips on dollar's gain, poor economic data

ALSO READ See how Asian markets are doing

The US markets shed more than 1% in Thursday trade as the dollar's gains and some disappointing economic numbers offset positive earnings momentum. Worries about debt in Greece weighed heavily on the market, curbing interest in riskier investments. Also Read - How ADRs performed

Technology and energy stocks were some of the biggest decliners. Qualcomm was the biggest decliner in the Nasdaq 100, tumbling more than 14%, after the chip maker delivered a cautious outlook and analysts slashed their price targets on the stock. Apple also weighed heavily on the Nasdaq. The stock fell more than 4% a day after introducing its iPAD tablet computer.

In earnings after the bell, Microsoft's second-quarter profit and revenue topped estimates. Net income rose 60% while revenue climbed 14%.

The Dow Jones industrial average slipped 115.70 points, or 1.13%, to end at 10,120.46. The Standard & Poor's 500 Index shed 12.97 points, or 1.18%, to 1,084.53. The Nasdaq Composite Index fell 42.41 points, or 1.91%, to close at 2,179.00.

In other news, Ben Bernanke was confirmed by the senate for second term as Fed chairman. This lifted one of the clouds hanging over the market, which helped financials pare losses by the closing bell but had little impact on the broader market.

In economic news, initial jobless claims dropped by 8,000 to 470,000, higher than expectations. Continuing claims too were above estimates at 4.60 million and durable goods orders for December increased 0.3%, which was far less than the 2% increase that had been widely expected.

In Forex market action, the dollar touched a 6 and a half month high against the euro.  The euro had fell to 1.39 against the dollar, its worst showing since mid-July, as investors worried that Greece may not be able to service its debt, putting pressure on the euro and raising fears the country could be forced out of the euro zone. The dollar index is currently around the 79 mark.

In the commodity space, copper headed for its longest losing streak in seven weeks and aluminum dropped to the lowest level in more than a month. Zinc slumped to a two-month low and lead declined to its lowest price in four months. Zinc slumped to a two-month low and lead declined to its lowest price in four months.

Crude prices fell holding near six-week lows after data showed fuel demand has not recovered from the worst US financial crisis in decades.