U.S. stocks ended narrowly mixed on Thursday as investors were cautiously awaiting the crucial monthly jobs data, which always set the tone for the market in a week or two.

The Dow Jones industrial average dipped 11.05 points, or 0.09 percent, to 12,705.41. The Standard & Poor's 500 added 1.45 points, or 0.11 percent, to 1,325.54. The Nasdaq Composite Index rose 11. 41 points, or 0.40 percent, to 2,859.68.

Before the opening bell, the Labor Department said that the number of people applying for jobless benefit fell by 12,000 to a seasonally adjusted 367,000.

Meanwhile, the four-week moving average, which better controls for weekly volatility, dipped for a third consecutive week, falling to 375,750 from a revised 377,750 the previous week.

The weekly report, together with another private jobs report released by private payrolls processing company ADP in the previous session, both showed the jobs market was steadily improving, making traders feel more optimistic about Friday's monthly data.

Economists now expect the economy to gain 150,000 in January while the unemployment rate stays at 8.5 percent.

However, January retail sales came in mixed, exerting downward pressures to relative stocks. Both Target and wholesale chain store Costco reported sales that exceeded estimates, but Macy's same-store sales gained less than expected.

Investors also watched for signals from Federal Reserve Chairman Ben Bernanke, who testified before U.S. lawmakers on Thursday. Bernanke described the pace of the U.S. economic recovery as "frustratingly slow," although he said the Fed anticipated higher levels of growth in the coming year than were seen in 2011.

Bernanke also mentioned that developments in Europe or elsewhere may unfold unfavorably and could worsen economic prospects in the United States, but he assured lawmakers that the Fed is doing everything in its power to prevent an economic slowdown.

Investors continued to pay close attention on Greece as the debt-burdened country was negotiating with its private creditors on a debt swap deal, which was expected to be reached soon to avoid a disastrous default.

On corporate news front, NYSE Euronext and Deutsche Boerse announced on Thursday that they had agreed to a mutual termination of the business combination agreement originally signed one year ago after the European Commission decided to block the proposed deal.