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NEW YORK (CNNMoney) -- U.S. stocks fell Thursday as a string of weak economic reports -- including jobless claims that fell below expectations -- have been keeping investors sidelined.
The Dow Jones industrial average (INDU) shed 47 points, or 0.4%. The S&P 500 (SPX) dropped 8 points, or 0.5%. The Nasdaq (COMP) was down 15 points, or 0.5%.
"It's the first time in some time that there's been a particularly negative jobs report," said Dan Greenhaus, chief equity strategist at BTIG. "The overall trend is decidedly more positive, but this is still a negative today."
Disappointing reports on durable goods orders, consumer confidence and home prices have dragged on domestic markets this week, while ongoing concerns about a growth slowdown in China have added pressure on world markets.
"I think overall the market has had a good run, and investors are trimming some exposure," said Paul Powers, head of US equity trading at Raymond James.
Most large financial stocks dropped more than 1% in early trading, including Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Citigroup (C, Fortune 500), Morgan Stanley (MS, Fortune 500), and Goldman Sachs (GS, Fortune 500).
While stocks are on track for a third day of losses, the initial public offering market has been buoyant and is on track for a record week. Of the two companies that are debuting Thursday, Millenial Media's (MM) shares nearly doubled in early trading. T-shirt maker Cafe Press (PRSS) will start trading soon. Both companies priced above their initial trading range.Stocks closed in the red Wednesday amid worries about slowing growth overseas and in the U.S.
U.S. economy to outpace Europe
Economy: First-time claims for unemployment benefits in the week ended March 24 fell to 359,000 -- a four-year low -- from 364,000 the previous week. But that was still higher than the 350,000 forecasted.
U.S. gross domestic product -- the broadest reading of economic growth --increased at an annual rate of 3% in the fourth quarter, according to the Bureau of Economic Analysis. That was the third revision, and was in line with analysts' estimates.
Companies: Best Buy's (BBY, Fortune 500) stock dropped after the company narrowly missed expectations and said it would close 50 stores.
Worthington (WOR) fell short of expectations with quarterly earnings of 27 cents per share on revenue of $580 million.
Sears Holdings' (SHLD, Fortune 500) stock rose after the New York Post reported that the retailer was shopping its Lands' End brand for $2 billion.
Red Hat's (RHT) stock jumped after the software maker reported quarterly earnings that beat expectations and a stock buyback of $133 million.
Research in Motion (RIMM) will report results after the closing bell. The BlackBerry maker is expected to post earnings per share of 81 cents on $4.5 billion in revenue.
World markets: European stocks dropped in afternoon trading. Britain's FTSE 100 (UKX) was off 0.8%, the DAX (DAX) in Germany lost 1.1% and France's CAC 40 (CAC40) was down 0.9%.
Asian markets ended lower. The Shanghai Composite (SHCOMP) declined 1.4%, the Hang Seng (HSI) in Hong Kong dropped 1.3% and Japan's Nikkei (N225) lost 0.7%.
Currencies and commodities: The dollar lost ground against the Japanese yen, but strengthened against the euro and the British pound.
Oil for May delivery slipped 80 cents to $104.62 a barrel.
Gold futures for April delivery rose $2.00 to $1,660.20 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury rose, sending yields down to 2.16% from 2.20% late Wednesday.
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