Orion Project

Wall Street's main indexes fell on Thursday, dragged down by economically sensitive bank and energy stocks and shrugging off data showing the labor market continued to limp out of a recession.

The Labor Department's weekly jobless claims report, the most timely indicator of economic health, showed fewer-than-expected Americans filed new claims for state unemployment benefits last week.

Ten of the 11 S&P sectors fell in early trading with energy, industrials and financials stocks, which recently came into favor on recovery hopes, declining the most.

"The entire market is sort of shortsighted, focused more on the recent run and completely forgetting about the improving outlook," said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York.