After reaching a four-month high, Wall Street suffered its worst falls in two weeks because of some disappointing corporate results.

The Dow Jones Industrial Average closed 0.6 per cent lower at 17,982 and the Australian market lost 43 points or 0.8 per cent with the S&P/ASX 200 index on 5229.6 points.

The S&P 500 Index lost 0.5 per cent to 2,091, but the Nasdaq fared better closing just 2 points lower at 4,945.

• House prices have fallen across the country
• ASIC reforms return pre-Abbott funding

Stocks in Europe also retreated – in London, the FTSE 100 Index closed down 0.5 per cent at 6,381.

Verizon Communications shed 4.3 per cent, after reporting earnings which fell short of market expectations.

News that a strike by its workers would likely impact its bottom line in the current quarter also weighed on the company’s share price.

Toy maker Mattel slumped 6.3 per cent on falling sales.

Coca-Cola tanked for a second day following an underwhelming profit report on Wednesday, but American Express gained value after its profit beat estimates.

At the same time, the Australian dollar was buying 77.35 US cents, having lost ground overnight.

On the cross-rates, it was worth 68.52 eurocents, 54.02 British pence, 84.63 Japanese yen and $NZ1.119.

West Texas crude oil rose to $US43.13 a barrel, a barrel of Tapis was lower at $US45.97, and spot gold had increased to $US1,248.46 an ounce.

Meanwhile, iron ore surged ahead to $US68.70 a tonne on spot markets in China, continuing a recent rebound.