The Dow Jones Industrial Average fell 11.13 points (0.11 percent) to 10,049.16 by 1520 GMT, losing gains the blue-chip index chalked up in early trading.

The broader S&P 500 index gained 0.25 points (0.02 percent) to 1,055.58 while the tech-rich Nasdaq composite index slipped 2.28 points (0.11 percent) to 2,139.26.

Labor Department data released before trading began said the number of Americans filing new claims for jobless benefits for the week to August 21 dipped to 473,000 from the previous week's revised figure of 504,000.

The latest figure was better than most economists' expectations of 485,000, but they said it continued to reflect the beleaguered jobless situation threatening to push back the world's largest economy into recession.

"When it comes down to it, the claims data provided more of the same in the sense that it continues to suggest hiring activity is not picking up to any great degree even if the number of layoffs has stabilized," said Patrick O'Hare, analyst at Briefing.com.

"The fundamental message of the report, however, is that initial claims continue to run at a level that is not commensurate with a strong pickup in job growth," O'Hare said.

Wall Street rebounded on Wednesday after the Dow fell below the psychologically sensitive 10,000-level threshold for several hours following grim reports on the housing market and goods orders.

Among stocks in focus Thursday was Dell, which rose 0.89 percent after the computer-making bellwether said it had raised its offer to buy out data storage firm 3PAR, beating rival Hewlett-Packard's bid.

3PAR's share dropped 2.02 percent to 26.25 dollars.

The bond market was also mixed.

The yield on the 10-year US Treasury bond was up to 2.545 percent from 2.538 percent Wednesday while that on the 30-year bond fell to 3.572 percent from 3.575 percent. Bond yield and prices move in opposite directions.