Overnight Markets: Wall Street little changed ahead of jobs report

US stocks ended little changed on Thursday as investors awaited Friday’s key employment report, but tech shares gained after strong earnings from chipmaker Qualcomm.

The Dow Jones industrial average dropped 11 points, or 0.09%, to 12,705. The Standard & Poor's 500 Index gained one point, or 0.11%, to 1,326. The Nasdaq Composite Index rose 11 points, or 0.4%, to 2,860.

Nonfarm payrolls report is expected to show the improving labour market trend in the US remained intact in January. According to Reuters survey, nonfarm payrolls likely rose by 150,000 after increasing 200,000 in December. The unemployment rate is seen holding steady at a near three-year low of 8.5%.

The optimism was reinforced after new claims for jobless benefits declined more than expected in the latest week, data released on Thursday showed.

Qualcomm helped technology shares outperform the broader market after the company’s first-quarter profit exceeded estimates. The chipmaker’s shares gained 2% after hitting their highest level in 12 years.

MasterCard jumped 6.7% after the payment processor registered a 24% surge in profit beating forecasts for the seventh straight quarter. Among financials, Citigroup advanced 1.3% and Bank of America added 1.2%.

Internet and social media companies rose after Facebook filed to raise $5 billion in an initial public offering. Zynga and Groupon rallied more than 7.3%.

Gap, the largest US specialty apparel chain, surged 11% after predicting earnings that beat analysts’ estimates.

Elsewhere, Green Mountain Coffee Roasters soared 24% a day after its first-quarter earnings far exceeded expectations.

On the negative side, healthcare shares declined after Merck & Co, the No. 2 US drugmaker, said profit would be little changed in 2012. The shares fell 0.5%. Insurer Cigna Corp shed 3.4% after posting a lower-than-expected fourth-quarter profit. Boston Scientific also reported lower quarterly earnings sending its shares down 4.1%.