Stocks fell on Thursday, as a slump in retailers and negative comments about Microsoft weighed on a market that tried to shake off the weak results from Cisco Systems.

The Nasdaq composite index lost 45.76 points, or 1.75 per cent, to finish at 2,562.06, according to the latest data, while the Dow Jones Industrial average fell 66.17 points, or 0.61 percent, to 10,880.55.

It was the lowest close for the Nasdaq since January 10. In the year to date, the Nasdaq is up 3.7 per cent, and Dow up 0.87 per cent.

Among retailers, shares in GAP, the largest US clothing chain, fell $2.95, or 10 per cent, to $26.61 after reporting disappointing January sales due to discounting. It predicted fiscal fourth-quarter earnings will fall short of Wall Street estimates.