NEW YORK (Reuters) – Stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.

Underlying confidence kept the Dow near an almost four-year high notched on Tuesday, though trading has been quiet since last week's stellar employment report. The S&P and Nasdaq are both up 0.3 percent so far this week while the Dow is essentially unchanged.

Randy Frederick, director of trading for Charles Schwab in Austin, Texas, said he would use any pullback on Greece as a buying opportunity. "And if the situation there gets resolved, we'll move higher even faster."

Greek party leaders gathered on Wednesday to agree to reforms demanded by the European Union and the International Monetary Fund after delays.

European Central Bank policymakers were still divided on what contribution the bank could make to a restructuring of Greece's sovereign debt, sources said. The ECB has ruled out joining private creditors in voluntarily accepting a reduction in the value of the Greek bonds it holds.

"We would take a hit if Greece is unable to come to a deal, but lately we've been decoupling from Europe as markets catch up to how strong the economy appears to be," said Frederick.

Dow component Walt Disney Co rose 0.7 percent to $41.27 a day after it reported quarterly profit that topped expectations.

Of the 315 companies in the S&P 500 that have reported earnings to date, 61 percent have come in above analysts' expectations, a rate below that of previous quarters.

Cisco Systems Inc, another Dow component and a bellwether for the networking industry, rose 2.4 percent to $20.93 in extended trading after reporting adjusted second-quarter earnings that beat expectations. Shares of Groupon Inc, the largest daily deal company, plunged 7.6 percent to $22.70 after the bell after it unexpectedly posted an adjusted quarterly loss, even as revenue almost tripled from the prior year.

The Dow Jones industrial average was up 5.75 points, or 0.04 percent, at 12,883.95. The Standard & Poor's 500 Index was up 2.91 points, or 0.22 percent, at 1,349.96. The Nasdaq Composite Index was up 11.78 points, or 0.41 percent, at 2,915.86.

The Dow on Tuesday marked its highest close since May 2008; stocks have rallied from late last year on central bank action and signs of an improving economy.

On Wednesday, high-profile Wall Streeters raised eyebrows with their endorsement of stocks.

Laurence D. Fink, chief executive of BlackRock, the world's largest money manager, told Bloomberg Television that investors should be 100 percent in stocks.

That followed bullish comments from the staff of renowned market bear Nouriel Roubini. Gina Sanchez, Roubini's director of equity and allocation strategy, told CNBC that the rally "has some legs."

The Dow has gained 21 percent since early October and has retraced over 80 percent of its bear market slide from 2007 to early 2009. The blue-chip index is now about 10 percent away from the all-time high it hit in October 2007, while the S&P and Nasdaq are both on track for a sixth week of gains.

The speed and magnitude of the gains have some suggesting a pullback could be imminent. While major indexes are slightly higher for the week, the CBOE Volatility index, which is considered a gauge of investor fear and generally moves inversely to the S&P, has spiked 6.3 percent.

Polo Ralph Lauren Corp surged 9.2 percent to $171.49 after the clothing maker reported better-than-expected results for the holiday quarter and raised its margin forecast.

Energy shares were the biggest decliners, as Brent and U.S. crude oil futures pared gains after a report showed a build-up in U.S. crude inventories. The S&P energy index fell 0.5 percent. Exxon Mobil Corp was one of the biggest losers on the Dow, falling 0.6 percent to $85.32.

Volume was light, with about 6.97 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 7.84 billion.

About 56 percent of stocks traded on the New York Stock Exchanged closed in positive territory while 54 percent of the Nasdaq closed higher.

(Reporting By Ryan Vlastelica; Editing by Leslie Adler)

NEW YORK (Reuters) – Stocks fluctuated around break-even on Wednesday as investors waited for Greece to accept tough reforms in exchange for a new bailout, but underlying confidence kept the Dow near its almost four-year high notched on Tuesday.

Greek party leaders finally gathered on Wednesday to agree to reforms demanded by the European Union and International Monetary Fund after delays that seemed to have been caused by procedural matters.

European Central Bank policymakers were still divided on what contribution the bank could make to a restructuring of Greece's sovereign debt, sources said. The ECB has ruled out joining private creditors in voluntarily accepting a reduction in the value of the Greek bonds it holds, but could come up with an alternative method.

"It is going to be a drawn-out process like it has been, but the market has been looking beyond that," said Tim Ghriskey, investment officer of Solaris Asset Management in Bedford Hills, New York.

The Dow Jones industrial average dropped 17.33 points, or 0.13 percent, to 12,860.87. The Standard & Poor's 500 Index fell 0.37 points, or 0.03 percent, to 1,346.68. The Nasdaq Composite Index gained 1.82 points, or 0.06 percent, to 2,905.90.

Energy shares were the biggest decliners, as Brent and U.S. crude oil futures pared gains after a report showed a build-up in U.S. crude inventories. The S&P energy index fell 0.7 percent. Exxon Mobil Corp was the biggest drag on the Dow, falling 1.2 percent to $84.87.

The Dow closed Tuesday at its highest level since May 2008 as stocks rallied from late last year on central bank action and signs of an improving economy.

The Dow has gained 21 percent since early October and has retraced over 80 percent of its bear market slide from 2007 to early 2009. The blue-chip index is now about 10 percent away from the all-time high it hit in October 2007.

"New highs bode well for future performance," technical analysts at Instinet in New York said in a research note. "From an intermediate perspective a new high would be a positive for the index."

High-profile Wall Streeters raised eyebrows with their endorsement of stocks.

Laurence D. Fink, chief executive of BlackRock, the world's largest money manager, told Bloomberg Television that investors should be 100 percent in stocks.

That followed bullish comments from the staff of renowned market bear Nouriel Roubini. Gina Sanchez, Roubini's director of equity and allocation strategy, told CNBC that the rally "has some legs."

"Any day when you a number of pundits come out and say you should own stocks, a lot of people say 'Oh, time to sell', especially after the market's had a big move," said Ghriskey.

Walt Disney Co rose nearly 1 percent to $41.32 and was a top boost to the Dow a day after it reported quarterly profit that grew more than expected.

Polo Ralph Lauren Corp surged nearly 9 percent to $171.14 after the clothing maker reported better-than-expected results for the holiday quarter and raised its margin forecast.

Ingersoll-Rand Plc, the maker of Schlage locks and Trane air conditioners, climbed 2 percent to $38.30 after quarterly results topped estimates, although sales fell.

Of the 315 companies in the S&P 500 that have reported earnings to date, 61.0 percent have come in above analysts' expectations.

McDonald's Corp shed 0.7 percent to $100.24 after its January sales rose more than expected at established restaurants across the globe, with strength in the United States helping to offset slowing sales growth in Europe.

Rambus Inc advanced 9 percent to $8.23 after the company reached a patent license agreement with Nvidia Corp and the companies settled all outstanding claims. Nvidia shares rose 4.1 percent to $16.38.

(Reporting By Edward Krudy; Editing by Leslie Adler)

NEW YORK (Reuters) – Stock index futures pointed to a slightly higher open for equities on Wall Street on Wednesday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 rising 0.2 to 0.3 percent.

Walt Disney Co's quarterly revenue fell short of Wall Street's expectations after the movie studio put in a poor showing, but profit grew at a faster-than-expected 12 percent clip as media networks and theme parks held up in an uncertain economy.

Western Union, the world's largest payment transfer company, posted a higher fourth-quarter profit, but forecast full-year earnings below market expectations on macro-economic challenges.

Groupon reports its first results as a public company and the market will be keen to see if the largest daily deal website makes its first quarterly profit. Groupon is expected to report earnings of 3 cents per share on revenue of $475 million, according to Thomson Reuters I/B/E/S.

Visa is expected to post a profit of $1.45 per share, up from $1.23 per share in the quarter, helped by a rise in consumer spending in the holiday season.

Other companies announcing results include Sprint Nextel, Cisco Systems, News Corp, Moody's Corp and Time Warner.

The Mortgage Bankers Association releases at 1200 GMT Weekly Mortgage Market Index for the week ended February 3, versus the prior week. The mortgage market index read 753.3 and the refinancing index was 4,113.8 in the previous week.

Yahoo Inc Chairman Roy Bostock and three other directors will step down as the struggling company ploughs ahead with an internal overhaul, including discussions on dealing with its stakes in China's Alibaba Group and Yahoo Japan.

Real estate services company CBRE Group Inc's quarterly earnings, excluding charges, beat Wall Street's forecast, as stronger revenue from sales and its outsourcing business offset lower leasing revenue from the Americas.

Lower chicken wing costs and price increases helped bar and grill chain Buffalo Wild Wings Inc top Wall Street estimates and forecast strong growth in fourth-quarter same-store sales.

Oil field services company Halliburton plans to stop issuing BlackBerry smartphones to employees and switch over to Apple's iPhone, which it said was better suited to its needs, marking another setback for Research In Motion.

Illumina rejected as inadequate on Tuesday a $5.7 billion hostile takeover bid from Roche, saying it undervalues the gene sequencing company.

Life Technologies Corp, a maker of tools and genetic testing equipment used in biotechnology research, on Tuesday reported slightly higher than expected fourth-quarter profit and said it sees modest revenue growth in 2012.

European stocks rose 0.6 percent on Wednesday, breaking a two-day losing streak, thanks to a string of upbeat corporate outlooks and as investors bet that Greece will finally secure the bailout it needs to avoid a chaotic default.

Greek parties will try yet again on Wednesday to strike a reform deal in return for a new international rescue package to avoid a chaotic default, after a string of delays which have prompted some EU leaders to warn that the euro zone can live without Athens.

U.S. stocks rose slightly on Tuesday, but with the outcome of discussions on a bailout package for Greece uncertain, investors are unlikely to make big bets in coming days.

The Dow Jones industrial average was up 33.07 points, or 0.26 percent, at 12,878.20. The Standard & Poor's 500 Index was up 2.72 points, or 0.20 percent, at 1,347.05. The Nasdaq Composite Index was up 2.09 points, or 0.07 percent, at 2,904.08.

(Reporting by Blaise Robinson. Editing by Jane Merriman)

BANGKOK – Asian stock markets followed Wall Street higher on Wednesday as Greece appeared close to a deal with creditors to cut its massive debts and avoid a chaotic bankruptcy.

Japan’s Nikkei 225 index rose 0.6 percent to 8,975.65. South Korea’s Kospi rose 1 percent to 2,000.24 and Hong Kong’s Hang Seng gained 0.6 percent to 20,821.06. Australia’s S&P/ASX 200 added 0.2 percent to 4,281.40.

Benchmarks in Singapore, Taiwan and mainland China rose, while Indonesia’s fell.

Greece has been kept solvent for the last two years by euro110 billion ($145 billion) in international rescue loans. But the money was not enough and a second loan is urgently needed to avert bankruptcy.

International lenders, however, have refused to approve more aid unless Greece learns to live within its means and implements a strict austerity program. Without an injection of emergency money — some euro130 billion ($170 billion) is on the line — Greece will likely default on bond repayments due next month.

“Optimism about finalizing the prolonged Greek debts deal boosted sentiment overnight as Greek officials said that the final draft of agreement between the Greek government and international creditors is in progress,” analysts at Credit Agricole CIB in Hong Kong said in an email.

Meanwhile, Toyota Motor Corp. jumped 3.5 percent, a day after Japan’s top automaker raised its annual earnings forecast, saying a recovery is on track. Yamaha Motor Co. surged 4.3 percent and Mazda Motor Corp. soared 5.1 percent.

On Tuesday, the Dow Jones industrial average rose 0.3 percent to close at 12,878.20. The Standard & Poor’s 500 gained 0.2 percent to 1,347.05. The Nasdaq composite rose marginally to 2,904.08 — about a point shy of its best close since December 2000.

A report that job openings soared to the highest level in almost three years in December also helped the U.S. market. The government reported Friday that the U.S. unemployment rate fell to 8.3 percent in January, the lowest in almost three years.

Benchmark oil for March delivery was up 43 cents to $98.84 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.50 to $98.41 per barrel on the Nymex on Tuesday.

In currency trading, the euro slipped to $1.3246 from $1.3248 late Tuesday in New York. But the dollar rose to 76.93 yen from 76.78 yen.

NEW YORK – Stocks edged lower in afternoon trading Monday as talks dragged on between Greek political leaders over a fresh austerity package required for the country to get more bailout loans.

President Nicolas Sarkozy of France and German Chancellor Angela Merkel warned Greek leaders that they need to push through new reforms or risk letting the country go bankrupt. Greece is hoping the European Central Bank, the International Monetary Fund and the European Commission will release a second installment of $170 billion in loans. Without that money, Greece will likely default when a bond repayment comes due March 20.

In Greece, talks between the prime minister and leaders of parties backing his coalition government were postponed for a day, even as European leaders prodded the government to push through new spending cuts, layoffs and other austerity measures.

The Dow Jones industrial average fell 49 points to 12,813 as of 2 p.m. Eastern time. Travelers Cos. Inc. led the Dow lower with a 1.5 percent decline.

In other trading, the Standard & Poor’s 500 index fell 4 points to 1,341. The Nasdaq composite fell 7 points to 2,897.

Sam Stovall, chief equity strategist at S&P Capital IQ, thinks investors are starting to wonder if the stock market’s recent stretch of calm trading is a prelude to a big drop. Trading has turned subdued compared with the wild swings of 2011. The S&P has closed up or down by more than 1 percent only three times this year. In December, that happened nine times.

“I look at it like a very-low-tide warning of an impending tsunami,” Stovall said. “We’re setting ourselves up for a decline, the sort of decline that would make you sit up and take notice.”

A worrisome sign, Stovall said, is a drop in the number of volatile trading days in which the S&P index ends lower. There have been only five days in the last month in which the S&P index has moved by more than 1 percent and then ended with a loss. That’s half of the monthly average since 2000. On April 29, for instance, the S&P 500 hit its peak for the year after an even calmer period, then lost 19 percent before hitting bottom on Oct. 3.

Stocks surged Friday after a surprisingly good U.S. employment report. Large gains in the market are often followed by modest moves as traders pull some of their winnings off the table. Since 1950, whenever the S&P rose by 1 percent or more in a trading day, the index has inched up an average of just 0.1 percent the next day, according to S&P Capital IQ.

Among companies making big moves:

• Boeing Co. fell 1.3 percent following reports that the company found a problem in its 787 Dreamliner. The aircraft maker said it was working to fix it and that there was no safety concern.

• Micron Technology Inc. fell 1 percent following news that the chip maker’s CEO died in a plane crash. Steve Appleton, 51, was at the helm for 18 years, leading the only company he’d ever worked for.

• Humana dropped 5.8 percent, the biggest loss in the S&P 500 index. The health insurance company reported revenue that fell short of analysts’ expectations. Humana also raised its earnings outlook for 2012 but that, too, was below analysts’ forecast.

NEW YORK (Reuters) – U.S. stocks dipped on Monday as a delay by debt-ridden Greece in accepting the terms of a bailout gave investors little reason to buy equities after a five-week rally.

Athens allowed another deadline to slip by as political leaders failed to respond to bailout terms from the European Union and International Monetary Fund. Greece needs the funds by March to meet big debt repayments or face a messy default.

The S&P has rallied for five straight weeks, helped in part by a run of better-than-expected U.S. economic data that was capped by Friday's solid employment report. The broad-based index is up nearly 7 percent for the year.

"You can mark it down to everyone biding their time, waiting on Greece," said Bill Stone, chief investment strategist at PNC Wealth Management in Philadelphia. "The one biggest risk factor out there remains Europe."

Recent actions by central banks in Europe and the United States to maintain loose monetary policies have helped the current resilience and reduced volatility in equity markets.

The Dow Jones industrial average was down 41.85 points, or 0.33 percent, at 12,820.38. The Standard & Poor's 500 Index was down 3.04 points, or 0.23 percent, at 1,341.86. The Nasdaq Composite Index was down 7.48 points, or 0.26 percent, at 2,898.18.

With stocks up so much this year, any adverse developments out of Europe were likely to bring a least a cooling-off period for markets.

"It's inevitable the risk profile that Greece represents is definitely going to cool the market tone, there is absolutely no way around that," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

Hasbro Inc rose 2.5 percent to $36.77 after the toymaker reported a fourth-quarter profit just above analysts' lowered expectations.

Humana Inc posted a big rise in fourth-quarter profit, but revenues came in below the Wall Street view. Its shares fell 5 percent to $85.70 and the Morgan Stanley healthcare payor index lost nearly 1 percent.

Through Monday morning, of the 290 companies in the S&P 500 reporting results, 60 percent posted profits that topped expectations, tracking below recent quarters at this point of the earnings season.

Technical analysts at Instinet in New York said a host of metrics, such as an upturn in the S&P 500's moving averages and a strong move up in January boded well for equity prices in the medium term.

"The persistency of both price appreciation and breadth since the beginning of the year suggests the next pullback will be a precursor to another attack on the 2011 highs in the S&P 500 near 1,370."

Fidelity National Financial Inc agreed to buy casual dining chain O'Charley's Inc for $9.85 a share. The title insurer already owned a 9.5 percent stake. O'Charley's surged 42 percent to $9.82.

Semiconductor stocks lost ground, dragged lower by a drop in Micron Technology Inc in the first trading session after the death of its chief executive. Micron shares were off 2.4 percent to $7.76, while the PHLX semiconductor index dropped 1.8 percent.

(Editing by Jeffrey Benkoe)

NEW YORK (Reuters) – Stock fell on Monday after a five-week rally on concerns Greece may be unable to avoid a chaotic default as it struggles to reach terms on a new bailout package.

Athens allowed another deadline to slip as political leaders failed to respond to terms for a new bailout from the European Union and Internation Monetary Fund. Greece needs the funds by March to meet big debt repayments.

German Chancellor Angela Merkel stepped up pressure on Greece, warning that time was running short for a deal to be struck.

"It's inevitable the risk profile that Greece represents is definitely going to cool the market tone, there is absolutely no way around that," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

"That lack of clarity, the protracted nature of this crisis and the fact that it simply will not go away, it's a bit unnerving to people who have seen the market tack on some very nice early year gains, and it forces people to want to be a little cautious."

The Dow Jones industrial average (.DJI) was down 39.01 points, or 0.30 percent, at 12,823.22. The Standard & Poor's 500 Index (.SPX) was down 3.86 points, or 0.29 percent, at 1,341.04. The Nasdaq Composite Index (.IXIC) was down 7.66 points, or 0.26 percent, at 2,898.00.

The S&P has rallied for five straight weeks on better-than-expected U.S. economic data, punctuated by Friday's solid employment report, pushing the index up nearly 7 percent for the year.

Hasbro Inc (HAS.O) fell 0.3 percent to $35.76 after the maker of Nerf foam toys and Monopoly board games reported a fourth-quarter profit just above analysts' lowered expectations.

Humana Inc (HUM.N) posted a big rise in fourth-quarter profit, but revenues came in below Wall Street expectations. Its shares fell 4.6 percent to $86.03. The Morgan Stanley healthcare payor index (.HMO) lost 0.7 percent.

Through Monday morning, of the 290 companies in the S&P 500 reporting results, 60 percent posted earnings that topped Wall Street expectations, tracking below recent quarters at this point of the reporting season.

Other companies expected to post earnings include Yum Brands Inc (YUM.N), Pioneer Natural Resources Co (PXD.N), Dun and Bradstreet Corp (DNB.N) and Anadarko Petroleum Corp (APC.N).

Fidelity National Financial Inc (FNF.N) agreed to buy O'Charley's Inc (CHUX.O) for $9.85 a share in a deal that values the casual dining chain at $221 million in cash. O'Charley's shares surged 42.2 percent to $9.84.

Semiconductor stocks lost ground, dragged lower by a drop in Micron Technology Inc (MU.O) in the first trading session after the death of its chief executive. Micron shares were off 3 percent to $7.71, while the PHLX semiconductor index (.SOX) dropped 1.3 percent.

(Reporting By Chuck Mikolajczak; editing by Jeffrey Benkoe)

NEW YORK – U.S. stock futures fell Monday as talks dragged on between Greek political leaders over a fresh austerity package that is required if the debt-ridden country is to get a crucial bailout package.

Dow futures are down 24 points at 12,769. The broader Standard & Poor’s 500 futures fell 4 points to 1,335. The Nasdaq composite futures fell 5 points to 2,519.

The declines follow a big gain Friday on the heels of surprisingly good U.S. employment figures.

In Europe, the leaders of the parties backing Greece’s coalition government are set to hold a second day of emergency talks over austerity measures that rescue creditors are demanding in return for more money.

Fears that a deal won’t emerge have reinforced concerns of a disorderly Greek debt default that could send shockwaves through the global economy. Prime Minister Lucas Papademos will meet with negotiators from the eurozone and the International Monetary Fund in the afternoon and then with the leaders of the three parties backing his coalition.

The parties all publicly oppose steep cuts in private sector pay demanded by the eurozone and IMF, but their backing is needed for the government to reach a deal for the bailout, which must be approved by the Greek Parliament. The new euro130 billion ($171 billion) bailout deal is vital for Greece to avoid bankruptcy next month as it cannot cover a euro14.5 billion ($19.1 billion) bond repayment due March 20 without the rescue funds.

The bailout’s implementation also depends on Greece’s progress in separate talks with banks and other private bondholders to forgive euro100 billion ($131.6 billion) in Greek debt, in exchange for a cash payment and new bonds with more lenient repayment terms.

In Europe, the FTSE 100 index of leading British shares was down 0.2 percent at 5,892 while Germany’s DAX fell 0.2 percent to 6,756. The CAC-40 in France was 0.6 percent lower at 3,406.

Oil prices tracked the broader market trends, with benchmark oil for March delivery down $1.17 at $96.67 a barrel in electronic trading on the New York Mercantile Exchange.

Greece will likely remain the focal point over the week, though a raft of corporate earnings, particularly in Europe, and a host of central bank meetings could garner some interest. The European Central Bank’s monthly policy meeting on Thursday could be crucial in determining market expectations of whether there will be further interest rate reductions. Meanwhile, many traders think the Bank of England will clear the way to inject more money into the U.K. economy in the hope of boosting lending.

Earlier Asian shares mostly traded higher as investors there had their first chance to respond to join in the advance generated by Friday’s upbeat jobs data.

Japan’s Nikkei 225 index rose 1.1 percent to close at 8,929.20, its highest closing in more than three months but Hong Kong’s Hang Seng lost 0.2 percent to 20,709.94. Benchmarks in Singapore and mainland China also rose.

NEW YORK (Reuters) – Stock index futures pointed to a lower open for equities on Wall Street on Monday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 down 0.2 to 0.5 percent.

The Conference Board releases its employment trend index for January at 10 a.m. ET. In the previous report, the index read 104.3.

General Motors (GM.N) aims to raise its profit margin to 10 percent over the next few years, up from the current margin of about 6 percent, Daniel Ammann, chief financial officer, told the Wall Street Journal in an interview.

On the earnings front, profit at Yum Brands (YUM.N) is expected to rise to 74 cents per share, from 63 cents per share, in the restaurants operator's quarterly report.

Other U.S. companies reporting results include Hasbro (HAS.O), Humana (HUM.N), Pioneer Natural Resources (PXD.N), Dun and Bradstreet Corp (DNB.N) and Anadarko (APC.N).

NYSE Euronext (NYX.N) plans to focus on smaller deals and returning capital to its shareholders after its failed $7.4 billion merger with Deutsche Boerse, the company's chief executive said on Friday.

Rockwood Holdings Inc (ROC.N) announced major expansion to double its lithium production capacity.

U.S. Federal Reserve Bank of St. Louis President James Bullard speaks at 11 a.m. ET on "Inflation Targeting in the U.S." before the Union League Club of Chicago.

European shares (.FTEU3) fell 0.5 percent after hitting six-month highs in the previous session, with investors worried about whether Greece can avoid a messy default.

Greece's coalition parties must tell the European Union on Monday whether they accept the painful terms of a new bailout deal as EU patience wears thin with political dithering in Athens over implementing reforms.

Japan's Nikkei average (.N225) rose 1.1 percent to close at a three-month high on Monday.

A surge in hiring in the world's largest economy last month drove the Nasdaq to an 11-year high on Friday as optimism grew that the labor market is on a steady path to recovery.

The Dow Jones industrial average (.DJI) gained 156.82 points, or 1.23 percent, to 12,862.23. The Standard & Poor's 500 Index (.SPX) rose 19.36 points, or 1.46 percent, to 1,344.90. The Nasdaq Composite Index (.IXIC) added 45.98 points, or 1.61 percent, to 2,905.66.

(Reporting by Atul Prakash; Editing by Erica Billingham)

NEW YORK (Reuters) – U.S. stocks seesawed in a tight range on Thursday, with winners and losers taking their cues from earnings reports, while a drop in jobless claims continued to point to a slowly healing labor market.

Healthcare shares were among the losers, with underwhelming quarterly reports from drugmaker Merck & Co Inc (MRK.N), insurer Cigna Corp (CI.N) and medical device maker Boston Scientific Corp (BSX.N). Merck fell 1.3 percent to $38.14, Cigna dropped 5.7 percent to $43.10 and Boston Scientific was off 7 percent to $5.67.

The S&P healthcare sector (.GSPA) fell nearly 1 percent and was the largest weight on the benchmark S&P 500 index.

Technology shares continued to outperform the broader market, with Qualcomm Inc (QCOM.O) hitting its highest level in 12 years after first-quarter profit trounced estimates. Shares gained 2.1 percent to $60.84 after hitting a high of $61.95.

MasterCard Inc (MA.N) rose near 5.6 percent to $377.84 after the payment processor beat analysts' estimates for the seventh straight quarter.

Investor sentiment was helped as the economy, on an uptrend of late, got another boost as new claims for jobless benefits dropped more than expected in the latest week. The government will report monthly payrolls data Friday.

"Investors are focusing on what they should, which is the improving backdrop in the U.S. economy," said Bruce Zaro, chief technical strategist, Delta Global Asset Management in Boston.

The Dow Jones industrial average (.DJI) was down 33.45 points, or 0.26 percent, at 12,683.01. The Standard & Poor's 500 Index (.SPX) was down 1.07 points, or 0.08 percent, at 1,323.02. The Nasdaq Composite Index (.IXIC) was up 4.50 points, or 0.16 percent, at 2,852.77.

Zaro expects the current uptrend for the S&P 500 to take it to 1,370 in the first half of the year, but the index could pull back before then at around the 1,330 level.

Green Mountain Coffee Roasters Inc (GMCR.O) soared 22.1 percent to $65.45 a day after its first-quarter earnings far exceeded expectations.

The third warmest January in 50 years hurt same-store sales at department stores and apparel retailers. But discounters such as Target and Costco as well as high-end stores beat estimates.

Target Corp (TGT.N) rose 1 percent to $51.94 while Abercrombie & Fitch Co (ANF.N) slumped 11.6 percent to $41.39, and Costco Wholesale Corp (COST.O) was up 2.2 percent at $85.02.

Facebook could raise as much as $10 billion in the biggest-ever Internet initial public offering, according to a filing Wednesday. In 2011, Facebook said net income rose 65 percent to $1 billion on revenue of $3.71 billion.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)