Stocks Struggle for Direction on Jobs, Retail Data

Software firm Adobe Systems (ADBE Quote) reported preliminary fourth-quarter results that were ahead of expectations, but also announced plans for an 8% reduction in headcount.

Media concern Viacom (VIA Quote) also announced job cuts and said it would put a raise freeze on some senior-level positions.

In the pharmaceutical space, Merck (MRK Quote) reaffirmed its 2008 earnings projections but projected 2009 results would fall short of analysts' current estimates.

Homebuilder Toll Brothers (TOL Quote) said its fourth-quarter loss narrowed year over year and said its revenue in the coming year would fall substantially from current levels.

In one bright spot, retail giant Wal-Mart (WMT Quote) announced its same-store sales rose 3.4% in November.

Across the board, however, the November same-store sales picture was less encouraging. Costco (COST Quote), Limited (LTD Quote) and Pacific Sunwear (PSUN Quote) were among companies to announce slackening sales.

The automakers were again in focus on Thursday. Earlier in the week, General Motors (GM Quote), Ford (F Quote) and Chryslerheaded to Capitol Hill to seek government help as they navigate a precarious market climate. Bloomberg reported that management at GM and Chrysler were contemplating a prearranged bankruptcy as a means to get government funds.

Turning to economic data, the Labor Department said jobless claims for the week ended Nov. 29 fell 21,000 to 509,000. The result was better than economists' forecast of 540,000 claims for the week. Separately, the Census Bureau's October read on factory orders showed a 5.1% decline, a larger drop than the 4% consensus estimate.

As the financial crisis was felt overseas, the Bank of England cut its key interest rate by one percentage point to 2%, and the European Central Bank reduced its rate to 2.5% from 3.25%. France also announced a $33 billion economic stimulus plan.