Stocks ended Thursday with major indexes moving only slightly, as investors weighed an upbeat reading on U.S. initial jobless claims and mixed earnings news ahead of the much-anticipated monthly payrolls report from the U.S. Labor Department on Friday.

The Dow Jones industrial average closed at 12,705.41, down 11.05 points or 0.1 per cent. The broader S&P 500 closed at 1325.54, up 1.45 points or 0.1 per cent. In Canada, the S&P/TSX composite index closed at 12,553.48, up 35.82 points or 0.3 per cent.

The day began on a bright note. U.S. initial jobless claims for the period ended last week fell by 12,000, to 367,000, suggesting again that the labor market is showing steady improvement. As well, Spain conducted a successful bond auction, relieving fears about rising borrowing costs there.

However, Ben Bernanke, chairman of the U.S. Federal Reserve, sounded cautious in his testimony before Congress. He said that central bank monetary policy is not a "panacea" for problems facing the economy, and that government must share the burden.

U.S. retailers moved strongly, though in different directions. Gap Inc. surged 10.6 per cent after its report on January same-store sales (that is, sales at stores open for at least one year) fell 4 per cent, beating expectations for a bigger decline. The clothing retailer also delivered guidance on fourth-quarter earnings that topped analysts' expectations.