U.S. stocks declined, following a five-week rally for the Standard & Poor’s 500 Index, amid concern about Europe’s debt crisis as Greek leaders wrestled with spending cuts to get aid and avert a default.

Banks (S5BANKX) in the S&P 500 dropped 1.3 percent, following a retreat in European lenders. Boeing Co. (BA) slid 1.3 percent as it ordered inspections of 787 Dreamliners after finding signs of fuselage delamination. Humana Inc. (HUM), the second-largest Medicare provider, lost 5.8 percent after raising its earnings forecast less than analysts estimated. Toll Brothers Inc. and Lennar (LEN) Corp. slumped at least 2.5 percent after Raymond James Financial Inc. cut its recommendation for the homebuilders.

The S&P 500 retreated 0.3 percent to 1,340.56 at 1:54 p.m. New York time. The benchmark gauge for American equities snapped a three-day advance. The Dow Jones Industrial Average decreased 47.72 points, or 0.4 percent, to 12,814.51 today.

“It’s an ongoing Greek tragedy,” Stephen Wood, the New York-based chief market strategist for Russell Investments, said in a phone interview. His firm oversees $137.6 billion. “We’re in the hands of the best efforts of European politicians. That’s a source of risk that’s difficult to forecast.”

Stocks fell as European leaders stepped up pressure on Greek politicians to meet the conditions of a 130 billion-euro ($171 billion) bailout, saying time was running out. French President Nicolas Sarkozy met German Chancellor Angela Merkel as Greece’s interim prime minister, Lucas Papademos, planned to confer with the so-called troika of international lenders. A gathering of Greek political leaders was delayed by a day until tomorrow as they struggled for a unified response.

Best Start

Today’s decline in equities came after the S&P 500 capped the best start to a year since 1987 as a report showed that employment growth topped estimates and the jobless rate unexpectedly fell to 8.3 percent. Nine out of 10 groups in the index fell today as commodity and financial shares had the biggest losses among 10 industries.

“Markets are not a very patient beast,” Michael A. Gayed, chief investment strategist in New York at Pension Partners LLC, said in a telephone interview. “When you have these talks that the Greece situation is going to be resolved, then, it gets postponed to next week and the week after, markets get impatient.”

Boeing fell 1.3 percent to $75.33. There is no “short-term safety concern” from the fault, which was caused by an incorrect assembly in a support structure within the plane’s aft fuselage, Scott Lefeber, a spokesman, said. The new checks add to challenges in boosting output of the twin-engine 787, which entered service in 2011 after more than three years of delays.

Humana, Lennar

Humana fell 5.8 percent to $84.89. The company says it may add about 40,000 more Medicare Advantage members in 2012 than previously expected. The increase will help overcome an anticipated increase in demand for medical services.

A gauge of homebuilders in S&P indexes slumped 2.1 percent. Toll Brothers Inc. (TOL), the largest U.S. luxury-home builder, slid 2.5 percent to $23.26. Lennar decreased 3.6 percent to $22.51. KB Home (KBH) tumbled 3.3 percent to $10.45. The companies are among those downgraded at Raymond James, which cited valuation concern.

Micron Technology Inc. (MU) retreated 1.6 percent to $7.82. The company named Mark Durcan as its chief executive officer, replacing Steve Appleton, who died on Feb. 3 after crashing an experimental plane. The shares fell 3.1 percent to $7.70 in late trading Feb. 3, after having been halted at $7.95.

Kroger Gains

Kroger Co. (KR) rose 1 percent to $24.15. The largest U.S. grocery-store chain traded last week at an 86 percent discount to its projected sales this fiscal year, leaving it cheaper than 99 percent of companies in the S&P 500, according to data compiled by Bloomberg. The company, which lost $4.7 billion in market capitalization during the last recession, was valued at 10.8 times estimated earnings, the lowest level for a U.S. food retailer greater than $2 billion, the data show.

Kroger, which has increased sales in every year since at least 1987 even as Target Corp. and Wal-Mart Stores Inc. grabbed market share from other supermarkets, may now become a target for retailers outside the U.S. or private equity firms, according to Northcoast Research Holdings LLC. Valued at $13.7 billion last week, Kroger could still attract a takeover offer 30 percent above its current price, Point View Wealth Management Inc. said, making it the largest grocery acquisition on record.

“Of the traditional pure-play grocery stores, Kroger is the crown jewel,” David Dietze, president and chief investment strategist at Summit, New Jersey-based Point View, which owns shares of Kroger, said in a telephone interview. “They have a long consistent record of positive same-store sales performance. It’s timely to acquire Kroger because it’s cheap.”