Green Mountain was the largest drag to midcaps as it lost almost half of its market capitalization a day after the single-serve coffee company slashed its full-year sales outlook.

The shares tumbled 47.8 percent to $25.87, notching a loss in market cap of almost $4 billion.

Other large losers included online marketer ValueClick Inc, down 22.2 percent to $16.80 after it reported revenue below analysts' estimates and forecast weak current-quarter sales.

Health Net posted adjusted profit below expectations and cut its full-year forecast, sending its shares down 24.9 percent to $27.26.

The S&P MidCap 400 index <.MID> dropped 1.7 percent while the S&P SmallCap 600 index <.SML> lost 1.4 percent. In comparison, the benchmark S&P 500 <.SPX> fell 0.8 percent.

The number new filings for jobless aid dropped by the most in nearly a year last week, but the excitement was tempered by other data showing companies in the services sector, though still hiring, are doing it at a slower pace.

The data came a day ahead of the closely watched non-farm payrolls report for April, expected to show the U.S. economy created 170,000 jobs last month.

Dutch food and chemicals group DSM agreed to buy smallcap Kensey Nash Corp for $360 million and shares of the medical device maker jumped 32.1 percent to $38.33.

(Reporting by Rodrigo Campos; Editing by Andrew Hay)