1st time unemployment claims eased for the latest week, but job creation remained elusive for the U.S. economy. The Dow dropped more than 100 points to 8138 while Nasdaq fell 10 points to 1718.

On the upside

Barnes & Noble (NYSE: BKS) posted a narrow quarterly loss, but the results of the nation's largest book retailer were better than expected as full-year profits remained within reach.

Limited Brands (NYSE: LTD) posted lower revenues and profits, but the results beat expectations. The operator of Victoria's Secret and other clothing and personal care products store also offered a higher outlook for the year.

On the downside

Synopsys (Nasdaq: SNPS) posted higher profits that beat estimates, but the chip software maker lowered its full-year targets.

GameStop (NYSE: GME) reported record sales and profits for the latest quarter, but investors focused on lower same-store sales of video games.

Shares of Alabama-based Regions Financial (NYSE: RF) continued to slide after selling new stock at only $4 a share. Shares of Fifth Third Bancorp (Nasdaq: FITB) also lost ground.

Apparel retailer Hot Topic (Nasdaq: HOTT) lowered its outlook for the current quarter.

In the broad market, declining issues outpaced advancers by a margin of more than 3 to 1 on the NYSE and by a margin of nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 5 points to 484.