Blue chip stocks suffered their fifth loss in a row Thursday, after upbeat economic data continued to fuel worries that the Fed will soon start to withdraw it stimulus efforts.
The Dow Jones Industrial Average fell more than 68 points, or 0.4% to close at 15,821.5, while the S&P 500 retreated 7.78 points, or 0.4% to end at 1,785.03.
And the Nasdaq Composite dropped 4.8 points, or 0.12% to close the day at 4,033.16.
Stocks lost their footing after initial claims for unemployment benefits fell more than expected and the Commerce Department said the U.S. economy expanded faster than initially thought in the third quarter.
Data reports issued so far this week have included better-than-expected readings from the labor market and manufacturers, reigniting concerns that the Federal Reserve could start reducing its $85-billion-a-month bond-purchase program as early as this month.
The Fed's easy money policies have been credited with fueling the 2013 stock market rally. Investors worry the gains may not prove sustainable if the Fed eases back its bond buying prematurely.
With stock prices sitting not far off record highs, some investors have opted to lock in profits.
Meanwhile, investors remain focused on the Labor Department's monthly jobs reports to be released Friday for hints regarding when the Fed may start tapering its stimulus program.
Prices on the 10-year U.S. Treasury fell, sending yields rising to 2.86%.
Gold prices fell, while crude oil prices climbed. Also, the Euro rose against the U.S. dollar.
In corporate news: Morgan Stanley (MS), J.P. Morgan Chase (JPM) and Citigroup (C) were among the worst performing financial stocks, in part because provisions in the Volcker rule that could hamper their trading businesses. Separately, Deutsche Bank reduced its outlook for shares of Morgan Stanley and Citi, saying both could take outsize hits from the expected slowdown in the Fed’s bond-buying program.
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Kroger (KR) fell 3.5% to close at $40.06 slipped after the supermarket chain reported identical-store sales continued to increase but at a rate slightly below analysts’ projections.
Dow component Walt Disney (DIS) edged higher after the company announced late Wednesday a 15% increase to its annual dividend to 86 cents a share.
General Growth Properties (GGP) gained 2.6% to close at $20.82 after S&P Dow Jones Indices said late Wednesday that it would add the real-estate investment trust to the S&P 500 index next week,
Dollar General (DG) rose 6.1% to close at $59.80 after the retailer reported better-than-expected earnings and raised its guidance.
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