US stocks retreat ahead of key jobs report

New York - US stocks closed modestly lower on Thursday as investors digested a series of economic data ahead of Friday's big jobs report for March.

The Dow Jones Industrial Average closed flat, down a scant 0.45 point at 16,572.55.

The broad-based S&P 500 slipped 2.13 (0.11%) from Wednesday's record close to 1,888.77, while the tech-rich Nasdaq Composite Index slid 38.72 (0.91%) to 4,237.74.

The main indices had opened with small gains but quickly slipped into negative territory.

"The Street may be cautious ahead of tomorrow's nonfarm payroll report," Charles Schwab & Co. said.

The Labour Department is expected to show the US economy added 195 000 jobs in March, up from 175 000 in February, and the unemployment rate ticked down to 6.6% from 6.7%.

Economic data were mixed. The services sector's activity partly rebounded from a steep February fall, the US trade deficit widened more than expected and weekly initial unemployment claims rose.

A report that Citigroup faces a criminal probe over a $400m fraud at its Mexico unit shaved 1.2% off the stock.

Nasdaq tech giant Apple shed 0.7%.

US technology giant Google on Thursday exited the rarefied club of $1 000 stocks after a two-to-one stock split. The group of "A" shares, trading under the "GOOGL" ticker, gained 0.6% at $571.50. The new class of non-voting "C" shares, under the ticker "GOOG," rose 0.5% to $569.74.

Juniper Networks, a software and data network company, gained 1.7% after disclosing a plan to trim worldwide headcount by 6%.

Internet radio service Pandora reported that active listeners at the end of March were 75.3 million, an increase of 8% from the year-ago period. Shares plunged 5.1%.

Liquidity Services, an online auction marketplace, fell almost 12.0% after a disappointing result in a Defense Logistics Agency procurement competition. Bank of America said Liquidity lost an auction to a competitor for a contract tied to the supply vehicles and trailers.

Anadarko Petroleum said it will pay $5.1bn to settle billions in environmental claims against Kerr-McGee, an oil company it acquired in 2006. The stock jumped 14.5%.

Bonds rallied. The yield on the 10-year US Treasury fell to 2.79% from 2.80% on Wednesday, while the 30-year declined to 3.63% from 3.65%. Bond prices and yields move inversely.