Another day of lunacy as the Dow plunged 170 points and for what?  Everyone's afraid that tomorrow's jobs report is going to be too good, the forecast being for 225,000 new jobs showing the economy is still steadily on the path to recovery.  So what is the problem with Wall Street?  Investors still haven't decided whether they want a recovery or not, since a recovery would mean eventual higher interest rates which many fear (irrationally so IMHO) will bring this historic bull market come crashing down.  Yes, the Fed has been consistent in its policy statements that interest rates will remain low until the economy is well on its own feet again.  Many even blame the near-zero interest rates for the weaknesses in the economy, hypocritically the same people who scream bloody murder and begin panic selling every time the Fed even hints at a hike.  The buy-and-holders are winning this contest hands down and the professionals hate that.  Adding to the lunacy was new fears about Greece.  Even though yesterday the market lauded Greece, even with the statement that their debt payment would be delayed, today suddenly that same statement turned an optimistic market negative again.  The good news is that the same people are buying and selling as volume remained right in line with averages at 6.3 billion.

Markets | Thu Jun 4, 2015 6:13pm EDT

Wall St. drops before jobs report; Greece worries linger

BY CAROLINE VALETKEVITCH

DJ:    17,905.58  -170.69     NAS:   5,059.13  -40.11       S&P:  2,095.84  -18.23

(Reuters) U.S. stocks fell on Thursday, hit by nervousness ahead of Friday's jobs report and lingering uncertainty over a Greece aid deal with creditors.

Declining oil and gold prices also weighed on energy and materials shares, which led declines in the benchmark S&P 500.

Data showed the labor market tightening, with first-time applications for unemployment aid down last week and the number of people on benefit rolls hitting the lowest level since 2000, suggesting the Federal Reserve will remain on track to raise interest rates later this year.

The data came ahead of Friday's key U.S. jobs report, expected to show a 225,000 gain in non-farm payrolls, according to a Reuters estimate.

"The concern is tomorrow and the jobs number, that is where all the focus is," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "Probably the concern (is) that it is going to be a good number."

Some investors think stronger jobs numbers could increase chances the Fed might raise rates sooner rather than later.

Adding to investor concerns, Greece delayed a debt payment to the International Monetary Fund due on Friday and German Chancellor Angela Merkel said talks on a cash-for-reforms deal were still far from an agreement.

The Dow Jones industrial average .DJI fell 170.69 points, or 0.94 percent, to 17,905.58, theS&P 500 .SPX lost 18.23 points, or 0.86 percent, to 2,095.84 and the Nasdaq Composite.IXIC dropped 40.11 points, or 0.79 percent, to 5,059.13.

Investors also digested the International Monetary Fund's comment urging the Fed not to raise rates until there are clear signs of a pickup in wages and inflation.

In a bearish sign, the S&P 500 closed below its 50-day moving average, a key technical indicator.

The S&P materials index .SPLRCM fell 1.3 percent, while the energy index .SPNY declined 1.2 percent. Oil prices eased for a second day ahead of an OPEC decision which could keep the market oversupplied.

Shares of chemical maker LyondellBasell Industries (LYB.N) lost 3.2 percent at $99.48, leading declines in the materials sector.

Delta Air Lines Inc (DAL.N) dipped 0.7 percent to $42.92 after it said its operating profit margin this quarter could be lower than it expected, with airlines hit by weaker U.S. demand. Shares of American Airlines (AAL.O) dropped 2.2 percent to $42.17.

On the plus side, Five Below (FIVE.O) shares jumped 7.6 percent to $37.77 after the teen merchandise retailer increased its full-year forecast.

After the bell, shares of Zumiez (ZUMZ.O) dropped 8.4 percent to $27.25 as it estimated current-quarter profit and revenue below analysts' expectations.

During the session, declining issues outnumbered advancing ones on the NYSE by 2,374 to 677, for a 3.51-to-1 ratio; on the Nasdaq, 1,994 issues fell and 769 advanced for a 2.59-to-1 ratio favoring decliners.

The S&P 500 posted four new 52-week highs and six new lows; the Nasdaq Composite recorded 83 new highs and 32 new lows.

About 6.3 billion shares changed hands on U.S. exchanges, slightly above the 6.2 billion average for the last five sessions, according to BATS Global Markets.