US STOCKS-Wall St drops as Greece worries linger; materials, energy fall
* Energy, material shares lead decline
* Weekly jobless claims fall
* Indexes down: Dow 0.9 pct, S&P 0.8 pct, Nasdaq 0.8 pct (Updates to late afternoon)
By Caroline Valetkevitch
June 4 (Reuters) - U.S. stocks fell late on Thursday afternoon as uncertainty remained over a Greece aid deal with creditors and as declining oil and gold prices weighed on energy and materials.
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 S&P materials index was down 1.2 percent, leading declines in the benchmark index, while energy was down 1 percent.
Data showed U.S. initial claims for state unemployment benefits dropped for the week ended May 30, pointing to some resilience in the labor market ahead of the May payrolls report on Friday.
"There's volatility over events in Europe. Investors seem to be hanging on every last comment," over Greece, said Bruce Zaro, chief technical strategist at Bolton Global Asset Management in Boston. "There's been this feeling that Europe was on its way to better economic growth, but I think this has brought it back to the front burner" in terms of concerns for the market. Continuación...