Stocks dip after positive economic news; Dow near 11K

NEW YORK (AP) — Stocks dipped today as traders balanced slightly better news on weekly unemployment claims against uncertainty about an upcoming monthly jobs report.

The Dow Jones industrial average came within two points of 11,000 before turning lower.

The Labor Department said first-time claims for unemployment insurance fell last week, a better result than analysts were expecting. Retailers including Macy's Inc., Abercrombie & Fitch and Limited Brands Inc. reported better-than-expected monthly sales, which initially provided a lift to the market.

The retail sales were positive, but "there's not enough to move the needle given that we've got the big jobs report tomorrow," said Hank Smith, chief investment officer at Haverford Investments.

Many traders were holding back ahead of the release Friday of the government's closely watched monthly employment report, which is the most important event on the economic calendar and very often determines which way stocks and bonds will trade.

Economists expect the unemployment rate climbed to 9.7 percent last month from 9.6 percent in August.