Stocks fell as a string of positive economic reports dimmed hopes that Federal Reserve Chairman Ben Bernanke would announce new stimulus on Friday. Initial jobless claims totaled 374,000, unchanged from the previous week's revised figure, above 370,000 expected. Also, personal income increased $42.3 billion, or 0.3%, in July, personal consumption expenditures increased $46 billion, or 0.4%, for the month, slightly below the 0.5% increase expected. Same-store sales data from several leading retailers, including Macy's , Costco Wholesale, Target and Gap, exceeded expectations. Europe remained in focus Thursday, following an auction of 5- and 10-year Italian bonds. Italy's borrowing costs fell, signaling that investors are more confident that the European Central Bank will stage a major intervention in the bond market. Tech sector took a hit as Ciena’s forecast appeared to dampen expectations of stronger spending in the telecommunications industry in the second half of the year. Ciena slid 19.5% after revenue forecast. Also, Angie’s List fell 5.48% after the stock was downgraded by Canaccord Genuity. Amazon.com was down 0.36% after the co. said its Kindle Fire tablet has sold out. Implied volatility inched higher on modest trading volumes.
