Major indices were mixed on Thursday after positive results from Wal-Mart drove the Dow and the S&P to intraday highs, however investors pulled back in the afternoon snapping the Nasdaq's record-breaking streak after a brokerage comment on a Chinese Internet company unnerved investors.

In economic news, the Commerce Department reported the trade deficit fell to its lowest level in seven months, helped by record-high sales of American products and the declining value of the dollar. The deficit declined to $57.6 billion in August, down close to 2.5 per cent from the July.

The Labor Department reported that applications for jobless benefits dropped a more-than-expected 12,000 to 308,000 last week.

And mildly positive economic news came from RealtyTrac, an online marketer of foreclosure properties. The number of foreclosures across the country dropped in September, falling 8 percent from a 32-month high in August. Delinquencies and defaults fell to 223,538.

The Dow Jones Industrials lost 64 points to end at 14,015; the S&P500 shed 8 points to 1,554, and the Nasdaq ended 39 points weaker to end at 2,772.

In company news, early results from Wal-Mart Stores helped drive the markets on Thursday. Shares were up 2.87% to $46.90 after the company reported a nearly 1.5 per cent rise in September sales. The number was towards the low end of its forecast, but the world's largest retailer raised its third-quarter earnings estimate.

But not all is well in the retail sector, shares in upscale department store chain Nordstrom were down 7.49% to $44.97 after September sales missed expectations, hurt by lower sales. Investors had expected more from the company; results are another indication that consumer spending continues to be hit by the economic downturn brought on by the beleagured housing market.

Shares in Goldman Sachs Group dropped 2.94% to $229.01 after the investment bank raised the estimated credit losses on its mortgage-backed securities portfolio to $3 billion. The company also announced the value of its stake in mortgage-backed securities and pools of loans has declined 35 per cent since May.

And finally, shares in Ruby Tuesday, a restaurant chain, plummeted 13.67% to $16.23 after it reported a 49 per cent drop in first-quarter earnings on Wednesday as competition hurt sales. The company also cut its full-year outlook. To try to boost sales, Ruby Tuesday said it would increase advertising and cut prices on some of its menu items.

And that takes us nicely to the best and worst performers in the Nasdaq Top 100. Helping prop-up the Nasdaq was Ross Stores shares were up 4.19% to $28.85 despite sales falling flat. Sun Microsys came next, and that was followed by Joy Global.

Fastenal was tumbled 10.23% to $44.25 after disappointing quarterly results. Infosys Technologies and Sandisk round out the list.