September crude oil futures fell 85 cents to settle at $88.91 a barrel. December gold futures fell by $16.60 at $1,590.70 an ounce.

The benchmark 10-year Treasury was rising 14/32, diluting the yield to 1.482%. The greenback was gaining 0.43%, according to the dollar index.

In corporate news, General Motors ( GM) shares fell 2.6% after the automaker posted profit of 90 cents a share, which topped the Wall Street target of 75 cents, though its net income took a hit from losses in Europe.

Abercrombie & Fitch ( ANF) shares plunged 14.6% after the apparel retailer slashed its second-quarter outlook amid tepid demand for its higher end items.

Shares of Gap ( GPS) popped by 12.8% after the clothing retailer announced Thursday that July same-store sales increased by a better-than-expected 10% and that it expects a year-over-year rise in second-quarter earnings.

First Solar ( FSLR) shares surged 21.2% after the solar panel company exceeded second-quarter estimates and hiked its full-year revenue outlook the previous day.

Bristol-Myers Squibb ( BMY) suspended a mid-stage study of its experimental hepatitis C drug BMS-094 due to a serious safety issue said to heart failure, according to ISI Group analyst Mark Schoenebaum.

BMS-094 was the sole reason behind Bristol-Myers' $2.5 billion acquisition of Inhibitex last January.

Shares tumbled 8.6%.

American International Group ( AIG) is looking to buy back a large amount of its shares from the government in a push that could make the U.S. a minority shareholder by the fall and allow the insurer to fully repay its bailout sooner than expected, the Journal reported, citing people familiar with the company's thinking.

Shares rose 0.84% in after hours after the company reported second-quarter operatings earnings per share of $1.06, which beat 60 cents consensus of analysts polled by Bloomberg.

The source of Wednesday's trading problem in about 150 stocks was traced to Knight Capital Group ( KCG), which said its market-making unit had suffered a software glitch that was interfering with its system's interaction with the New York Stock Exchange.

Knight Capital said in a press statement released Thursday that it has traded out of its entire erroneous trade position, which has resulted in a realized pretax loss of about $440 million.

Shares collapsed 63% on Thursday and were dipping another 19% after-hours.

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

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