(By Salman - iStockAnalyst Writer)US stocks retreated on Thursday as poor corporate earnings and gloomy economic data sapped investor confidence.

The Dow Jones Industrial Average fell 105.30 points or 1.28% to finish at 8,122.80. The S&P 500 declined 12.74 points or 1.52% to 827.50. The Nasdaq Composite shed 41.58 points or 2.76% to end at 1,465.49.

A release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits  jumped 62,000 to 589,00 in the week ending Jan. 17. Economists had forecast jobless claims to rise to 548,000. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, as unchanged at 519,250. Continuing claims for the week ending Dec. 10 jumped 58,750 to 4.56 million, a 26 year high.

A Department of Commerce release showed housing starts fell a record 4.5% in October to seasonally adjusted annual rate of 791,000, the lowest since records began in 1959. Economists had projected Housing Starts to decline to an annual rate of 780,000.

Building Permits dropped 12% to annual rate of 708,000. Economists had forecast building permits to decline to 772,000 in December.

Microsoft Corp.(NASDAQ: MSFT) dropped $2.27 or 11.71% to $17.11. The software giant reported on Thursday that its second quarter net income declined to $4.17 billion or 47 cents a share from net income of $4.7 billion, or 50 cents a share in the year ago period. Analysts' estimates were for earnings of 49 cents a share. Revenue increased marginally to $16.6 billion from $16.4 billion last year. Analysts had projected revenue of $17.08 billion. The company said that it would eliminate 5.5% of its workforce or 5500 jobs ver the next 18 months "in light of the further deterioration of global economic conditions."

Chipmaker Intel Corp. (NASDAQ: INTC) subtracted 44 cents or 3.32% to close at $12.82.

Apple (NASDAQ: AAPL) jumped $5.53 or 6.68% to $88.36. Late on Wednesday, iPhone maker said its first quarter net income rose to $1.61 billion, or $1.78 a share, from $1.58 billion, or $1.76 a share in the corresponding quarter a year ago. Analysts had projected earnings of $1.40 a share. Revenue rose 5.8% to $10.2 billion, topping the Wall Street estimates of $9.74 billion.

EBay (NASDAQ: EBAY) plunged $1.61 or 12.12%. Online auctioneer said on Wednesday that its fourth quarter net income fell 31% to $367 million or 29 cents a share from $531 million, or 39 cents a share, in the same quarter a year ago. Excluding one-time items, the company earned 41 cents a share, beating the consensus estimates of 39 cents a share. Revenue decreased 6% to $2.04 billion, falling short of Wall Street estimates of $2.12 billion.

Seagate Technology (NASDAQ: STX) sank $1.02 or 24% to $3.23.