U.S. stocks flat after mixed economic data

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In this Feb. 1, 2012 photo, specialist Jay Woods, center, works at his post on the floor of the New York Stock Exchange. Markets took a breather on Thursday, Feb. 2, 2012, following solid gains in the previous session, as investors positioned themselves for crucial U.S. jobs data that often set the tone for a week or two after their release. (AP Photo/Richard Drew)

Updated: February 2, 2012 10:48AM

Mixed reports on retail sales and unemployment left stocks little changed Thursday, a day ahead of a closely watched government overview of the American job market in January.

The Labor Department said weekly unemployment claims fell by 12,000, to a seasonally adjusted 367,000. A less volatile reading of claims, the four-week moving average, fell to 375,750, the lowest since June 2008.

On Friday, the government reports how many jobs the economy added in January and gives the latest unemployment rate. In December, it was 8.5 percent.

January retail sales were mixed. Costco and Target came in better than expected. Macy’s and Dillard’s were among stores falling short. Costco shares rose 2.5 percent, and Target shares rose 1.1 percent.

In late morning trading, the Dow Jones industrial average was unchanged. The broader S&P 500 index rose three points to 1,327. The Nasdaq composite rose 15 points to 2,864.

Abercrombie & Fitch Co. fell 13 percent to a one-year low after it said higher markdowns and cotton costs mean its adjusted fourth-quarter profit and revenue will be less than analysts had expected.

Gap rose 9.4 percent after saying revenue at its high-end Banana Republic stores rose 6 percent.

The S&P 500 has risen 5.5 percent for the year. Last year, investors were so worried about a financial disaster in Europe that U.S. companies with strong earnings have been undervalued, said Tim Courtney, chief investment officer of Burns Advisory Group in Oklahoma City. Now, stock prices are catching up.

“Right now the market is going up just on the absence of bad news, on the absence of that worst-case scenario materializing,” he said.

Stocks in Europe were flat or up slightly. Britain’s FTSE 100 index was up 0.3 percent. Germany’s DAX was 0.8 percent higher, and the CAC-40 in France was 0.5 percent higher.

The euro was also subdued after recent gains, trading slightly lower at $1.317.

In other corporate news:

— Green Mountain Coffee Roasters Inc., which makes Keurig cup coffee brewers, rose a hot 17 percent after it said first-quarter revenue more than doubled, margins tripled, and net income rose more than 40-fold.

— MasterCard rose 6 percent after adjusted profits beat Wall Street expectations.