MICROSOFT : Stocks fall on Microsoft and economic woes

NEW YORK (Reuters) - Stocks tumbled on Thursday, with the major indexes falling more than 2 percent after Microsoft Corp's earnings missed expectations and labor and housing market data added to economic concerns.

Microsoft was down 8 percent after it said it would cut up to 5,000 jobs over the next 18 months and that it could no longer offer profit forecasts for the rest of the fiscal year. The stock was among the Dow's biggest drags.

The Dow Jones industrial average <.DJI> fell 132.14 points, or 1.61 percent, to 8,095.96. The Standard & Poor's 500 Index <.SPX> was down 13.51 points, or 1.61 percent, at 826.73. The Nasdaq Composite Index <.IXIC> fave up 39.54 points, or 2.62 percent, at 1,467.53.

(Reporting by Leah Schnurr, Editing by Chizu Nomiyama)