Stocks End Mixed Ahead of Jobs Report

Traders anticipate another dismal showing for the labor market in Friday's report

U.S. stocks closed mixed Thursday, with the Dow industrials lagging broader-market indexes ahead of Friday's December U.S. nonfarm payrolls data. Trading was light but volatile ahead of the data, with the consensus forecast calling for a 490,000 decline in December after a 533,000 drop in November and a rise in the jobless rate to 6.9%.

Technology issues were among the better performers Thursday, led by Microsoft (MSFT) on the eve of a test rollout of Windows 7 software.

A mixed bag of retail sales reports sent Wal-Mart (WMT) lower and Sears Holdings (SHLD) higher.

Bonds were mixed. The dollar index was lower. Gold futures were up. Crude oil futures were lower.

On Thursday, the 30-stock Dow Jones industrial average finished lower by 27.24 points, or 0.31%, at 8,742.46. The broader S&P 500 index gained 3.08 points, or 0.34%, to 909.73. The tech-heavy Nasdaq composite index added 17.95 points, or 1.12%, to 1,617.01.

On the New York Stock Exchange, 19 stocks were higher in price for every 12 that fell. Nasdaq breadth was 17-10 positive.

Retailing giant Wal-Mart cut its fourth quarter earnings per share from continuing operations estimate from $1.03-$1.07 to 91 cents-94 cents. The company posted 1.2% higher December U.S. same-store sales (1.7% without fuel) and slightly lower total company sales. Wal-Mart noted that total sales in its international segment improved on a constant-currency basis. The company sees flat-to-2% higher January same-store sales.

Other retailers, including JC Penney (JCP), Gap Inc. (GPS), Nordstrom (JWN), Costco Wholesale (COST), Bed Bath & Beyond (BBBY), Target (TGT), Saks (SKS), American Eagle Outfitters (AEO), Abercrombie & Fitch (ANF), and Macy's (M), also reported weak December results or guided earnings lower. Macy's also said it will close 11 underperforming stores.

Bucking the downtrend: Sears Holdings (SHLD), which was sharply higher Thursday after posting 1.1% lower Kmart December same-store sales, 13% lower Sears domestic same-stores sales, and 7.3% lower December total same-store sales. The company noted that gross margin rates for the quarter-to-date period improved slightly from last year as higher margin rates at Kmart were somewhat offset by lower margin rates at Sears domestic stores. The company currently expects fourth-quarter EPS of $2.44-$3.09 (excluding items); it also expects to end fiscal 2009 with approximately $8.5 billion of domestic inventory, down from $9.1 billion last year.

Obama outlined his plans for the economic recovery Thursday in a speech in Virginia.