U.S. stocks finished on a mixed note, as investors remained cautious ahead of a key jobs report on Friday. Varied corporate results and better jobless claims data also weighed on the sentiment.
The Dow industrial average edged 0.09 percent lower to finish at 12,705.40. The Nasdaq Stock Market advanced 0.40 percent to end at 2,859.68. Standard and Poor's 500 gained 0.11 percent to close at 1,324.54 on Thursday.
On the economic front, the number of Americans who continued to receive jobless benefits dropped below forecast, a government data showed. Jobless claims fell 12,000 to 367,000 last week from a revised 379,000 in the prior period, while economists projected a decline to 375,000.
Federal Reserve Chairman Ben Bernanke assessment of the economy failed to boost sentiment. Over the past two and a half years, the U.S. economy has been gradually recovering from the recent deep recession, though the pace of the recovery has been "frustratingly slow", according to Fed Chairman Ben Bernanke's prepared testimony before the House Budget Committee.
On Friday, the monthly report on nonfarm payrolls and the unemployment rate will be released.
Hot Stocks Of The Day: (ANF, MA, GPS, ANN, TRMB, WYNN)
In corporate news, Abercrombie & Fitch Co. (NYSE:ANF) tumbled 13.7 percent to close at $40.40 after the specialty retailer guided fourth-quarter non-GAAP earnings per share of around $1.10 to $1.15, below consensus of $1.55. Net sales grew 16 percent to $1.329 billion, but below expectations of $1.38 billion. The company blamed high promotional environment and all-time high cotton costs for weaker-than-forecast sales.
MasterCard Inc. (NYSE:MA) rose 6.7 percent to finish at $381.57 after the payment processor posted stronger-than-expected earnings. Excluding items, the company earned $4.03 a share, surpassing expectations of $3.91 per share.
Gap Inc. (NYSE:GPS) surged 10.6 percent to end at $21.52 after the apparel retailer guided fourth-quarter earnings between $0.41 and $0.42, above First Call consensus of $0.35.
ANN Inc. (NYSE: ANN) dropped 6.7 percent to end at $22.91 after the women apparel retailer warned of fourth-quarter results. The company expects fourth quarter and full-year sales of $566 million and $2.2 billion, respectively. Analysts' expect sales of $577.9 million for the quarter and $2.22 billion for the full year.
Trimble Navigation Ltd.