US STOCKS-Wall St slips as jobless claims offset tech deal

* Jobless claims fall slightly less than expected

* Cisco’s CEO cautious over economy

* Whole Foods’ stock rises after results, Sony down

* Dow off 0.2 pct, S&P off 0.4 pct, Nasdaq off 0.5 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday, changes byline)

By Ryan Vlastelica

NEW YORK, May 13 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Thursday,
following the best three-day run in 10 months as lackluster
jobless data underscored difficulties facing the labor market
and offset optimism after a multibillion-dollar tech deal.

The number of workers filing new applications for jobless
benefits fell less than expected last week, while those
continuing to receive benefits unexpectedly rose. For details,
see [ID:nN13129786]

“The labor market is improving, but not nearly fast
enough,” said Joseph Battipaglia, market strategist at Stifel
Nicolaus in Yardley, Pennsylvania. “It remains very fragile
and that’s why consumers remains cautious.”

Tech stocks were in focus after German software company
SAP AG (SAPG.DE: )(SAP.N: ) agreed to buy smaller U.S. rival
Sybase Inc (SY.N: ) for $5.8 billion. Sybase jumped 14.6 percent
to $64.35, while the U.S.-listed shares of SAP fell 0.6
percent to $44.65.

Cisco Systems Inc (CSCO.O: ) fell 4.2 percent to $25.62 a
day after its chief executive expressed caution about the
economy, even as quarterly results beat expectations. The
stock was the heaviest percentage drag on the Dow.
[ID:nN12195688]

“Cisco is probably seeing a recovery, but they’re going to
be a little cautious and make sure that all the spending is in
the pipeline,” said Thomas Nyheim, vice president and
portfolio manager at Christiana Bank & Trust Co in Greenville,
Delaware.

The Dow Jones industrial average (.DJI: ) was down 25.54
points, or 0.23 percent, at 10,871.37. The Standard & Poor’s
500 Index (.SPX: ) was down 5.06 points, or 0.43 percent, at
1,166.61. The Nasdaq Composite Index (.IXIC: ) was down 11.94
points, or 0.49 percent, at 2,413.08.

The energy sector led the way down as June crude oil
futures fell 1.8 percent below $75 per barrel. Dow component
Chevron Corp (CVX.N: ) fell 1.4 percent to $78.94.

On the upside, Whole Foods Market Inc (WFMI.O: ) jumped 5.7
percent to $42.56, boosting consumer stocks after its
quarterly profit topped estimates and it raised its full-year
forecasts.[ID:nN12226813]

U.S.-listed shares of Sony Corp (SNE.N: ) fell 3.7 percent
to $32 after it forecast a full-year operating profit that was
below expectations. [ID:nTOE64B041]

Morgan Stanley (MS.N: ) (Read more about the money market today. ) rose 1 percent to $28.09 after FBR
Capital Markets upgraded the stock to “outperform,” expecting
it to gain market shares in its institutional trading
division. [ID:nSGE64C0FJ]

Elsewhere on the economic front, U.S. import prices rose a
touch more than expected in April as petroleum prices surged,
a government report showed, though a small gain in costs,
excluding petroleum, pointed to tame inflation pressure.

Trading was choppy, with declining stocks outnumbering
advancing ones on the New York Stock Exchange by a ratio of
about about 16 to 13. On the Nasdaq, about three stocks fell
for every two that rose.

Investing Basics

(Editing by Jan Paschal)

US STOCKS-Wall St slips as jobless claims offset tech deal