By ALEXANDRA SCAGGS

NEW YORK—Growth-sensitive sectors helped pull major indexes lower, amid worries about Europe and underwhelming data on the U.S. economy.

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Dow Jones Newswires Managing Editor Michael Casey joins the News HUb to discuss the latest news on jobless claims, the European Central Bank and stocks to watch in the markets. Photo: Getty Images.

Dow Jones Newswires Managing Editor Michael Casey shares with investors why he's watching stock from Cinga, Sony and LinkedIn in the markets today. Photo: Getty Images.

The Dow Jones Industrial Average declined 42.47 points, or 0.3%, to 13944.05, further retreating from multiyear highs hit Feb. 1.

The Standard & Poor's 500-stock index tilted lower by 2.73 points, or 0.2%, to 1509.39. The materials and energy sectors—all considered closely tied to global growth—were the biggest decliners. The Nasdaq Composite Index declined 3.34 points, or 0.1%, to 3165.13.

Still, stocks closed well above their lows for the day. The blue chips fell as much as 134 points before later recouping some of their losses. Thursday was the fourth trading session out of five in February in which the Dow industrials had triple-digit swings intraday.

"There's a lot of crosscurrents" in the stock market, said Craig Hodges, portfolio manager with Hodges Funds, which oversees about $1 billion. "We're probably due for a little bit of a setback."

In the U.S., jobless claims declined in the latest week to 366,000. While that was more claims than the 360,000 expected, the four-week moving average of initial claims, which smooths out week-to-week volatility, fell to levels not seen since 2008.

"The bulls and bears can both pull something out of it," said Uri Landesman, president of $1.1 billion hedge fund Platinum Partners.

The first read of fourth-quarter productivity showed a decline of 2% on the quarter, a bigger drop than the 1.6% expected. Unit labor costs rose 4.5%, more than the 3.2% gain expected.

Consumer credit for December expanded by $14.6 billion on the month, more than the $13 billion expected.

European markets closed broadly lower after European Central Bank President Mario Draghi spoke to the press, addressing recent gains in the euro that he said could keep a damper on inflation. The ECB left key interest rates unchanged, as widely expected. The Stoxx Europe 600 lost 0.2%.

In corporate news, US Airways Group (LCC) rallied after The Wall Street Journal reported that the airline and American Airlines parent AMR are working out details of a merger agreement. The combination would get American out of bankruptcy, and create the world's largest airline.

Apple (AAPL) shares advanced after hedge-fund manager David Einhorn urged shareholders to vote against a company proposal that would eliminate the technology giant's preferred stock. His firm, Greenlight Capital, said in a statement that Mr. Einhorn had been having discussions with the company and was unhappy with its use of capital.

In Asia, Japan's Nikkei Stock Average fell 0.9%, pulling back from Wednesday's 3.8% surge, amid a sharp drop in Nikon shares following disappointing quarterly results. China's Shanghai Composite slipped 0.7% to snap an eight-session win streak.

Crude-oil futures declined 0.8% to settle at $95.83 a barrel, while front-month February gold futures edged down 0.4% to settle at $1,670.40 a troy ounce. The dollar gained sharply against the euro on Mr. Draghi's comments, and edged higher against the yen. Yields on the benchmark 10-year U.S. Treasury bond fell to 1.951% as prices rose.

In other corporate news, Sprint Nextel (S) fell after the wireless carrier reported a narrower-than-expected loss, but higher-than-forecast net customer losses.

Lazard (LAZ) gained after the midsize investment bank beat Wall Street estimates for its fourth-quarter revenue and earnings.

Growth-sensitive sectors helped pull major indexes lower, amid worries about Europe and underwhelming data on the U.S. economy. Kaitlyn Kiernan reports on The News Hub.

Three-dimensional printer maker ExOne jumped in its public trading debut, amid healthy investor appetite for three-dimensional-printer shares.

Ann (ANN), the owner of the Ann Taylor clothing brand, slid after the retailer cut its fiscal-year 2012 guidance.

Green Mountain Coffee Roasters (GMCR) slumped after the company's fiscal first-quarter earnings topped estimates, but its second-quarter sales growth outlook was below current projections.

Akamai Technologies (AKAM) plummeted after the Internet technology company's fourth-quarter revenue missed expectations, offsetting a slight beat in earnings and a $150 million extension of its stock repurchase program.

DeVry (DV) leapt after the for-profit education company reported fiscal second-quarter earnings that were well above forecasts and revenue that declined less than expected.

Limited Brands (LTD) fell after the apparel retailer reported January same-store sales that rose above expectations, but kept its fiscal fourth-quarter earnings estimate unchanged.

Caesars Entertainment and fellow casino operator Boyd Gaming (BYD) jumped after New Jersey Governor Chris Christie said he would support a law to legalize online gambling in the state if it were revised by the legislature.

Write to Alexandra Scaggs at alexandra.scaggs@dowjones.com