S&P 500 has longest slump since May

Stock prices fell for the sixth consecutive session on Thursday despite a positive report on employment.

The Dow Jones Industrial Average fell 31.27 points to 12,573.27. The Nasdaq Composite Index was down 21.79 points to 2,866.19 and the S&P 500 Stock Index declined 6.69 points to 1,334.76.

Volatility in global currencies kept the markets in a tight range through most of the session. The Department of Labor did report initial claims for jobless benefits fell by 26,000 in the past week to 350,000, the lowest level in four years.

Oil rebounded from early losses after it was reported the U.S. had raised sanctions against Iran in an effort to block development of nuclear products. Crude closed at $86.08 a barrel, up 31 cents. Gold dropped $10.40 to $1,565.30 an ounce.

Equities pared earlier losses as Procter & Gamble Co. (NYSE: PG) and Merck & Co. Inc. (NYSE: MRK) rallied more than 3.7 percent, while an S&P index of homebuilders jumped 2.4 percent. Bank of America Corp. (NYSE: BAC) and Morgan Stanley (NYSE: MS) slipped at least 1.9 percent, pacing declines among banks. Supervalu Inc. (NYSE: SVU) sank 49 percent after the third- largest U.S. grocery chain said it will review strategic alternatives for the business and suspended its dividend.

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc. (NYSE: BRK.A), told CNBC that economic growth in the U.S. is slowing even as the housing market shows signs of rebounding.

An S&P index of homebuilders rose 2.4 percent. Lennar Corp. (NYSE: LEN) jumped 3.6 percent to $31.06. PulteGroup Inc. (NYSE: PHM) gained 2.9 percent to $10.84, while D.R. Horton Inc. (NYSE: DHI) added 2.7 percent to $18.37.

McDonald’s Corp. (NYSE: MCD) advanced 2.7 percent to $91.93. Sales at the restaurant chain probably “meaningfully” beat even the highest analyst estimate, Mark Kalinowski, an analyst with Janney Montgomery Scott LLC said, citing checks with franchisees.

JPMorgan Chase & Co. (NYSE: JPM) slid 1.6 percent to $34.04. Investors will look for Chief Executive Officer Jamie Dimon to restore confidence when the company reports second-quarter results Friday. The bank may say profit fell 40 percent to 76 cents a share, excluding accounting adjustments, according to the average estimate from analysts in a Bloomberg survey. JPMorgan shares have dropped 16 percent since May 10, when the company disclosed a $2 billion loss on credit derivatives.

Lexmark International Inc. (NYSE: LXK) slumped 7.5 percent to $24.31, leading losses among technology shares. Benjamin Reitzes, an analyst with Barclays Plc (NYSE: BCS), cut the maker of laser and inkjet printers to underweight, an equivalent of sell, citing a slump in corporate spending as more workers use mobile devices. The stock was previously rated equalweight.

Safeway Inc. (NYSE: SWY) slumped 13 percent, the most in the S&P 500, to $15.73. Kroger Co. (NYSE: KR), the biggest, sank 3.7 percent to $21.96.

Marriott International Inc. (NYSE: MAR) slid 6.4 percent to $35.58 as the hotel operator reduced its projections for revenue growth per available room outside North America. Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT), owner of the luxury St. Regis and W brands, retreated 5.3 percent to $48.66.

Airlines fell as Goldman Sachs Group Inc. said analysts’ estimates for the industry are “too optimistic.” Tom Kim, an analyst with Goldman Sachs, rated Delta Air Lines Inc. (NYSE: DAL) and United Continental Holdings Inc. (NYSE: UAL) sell in new coverage, saying the two companies are most vulnerable to earnings pressure.

Delta Air fell 3.1 percent to $10.75 while United Continental slipped 4.1 percent to $23.78.