US equities trade in neutral territory after mixed economic data

US stock indices on Thursday pared early gains and traded mixed, taking cues from mixed economic data that revealed underlying strength in the US labor market but was negated by falling domestic productivity and an unexpected fall in ISM manufacturing PMI.

According to the data release by the Labor Department on Thursday, weekly jobless claims rose by 2k to 263k, while the revised estimate of second-quarter non-farm productivity showed a fall of 0.6% as compared to 0.5% reported previously. Meanwhile, the ISM manufacturing PMI fell in contraction territory and came-in at 49.4 for August as against 52.0 expected and July's 52.6.

During early trade, the Dow Jones Industrial Average dropped 10 points to 18,392, while the broader S&P500 fell 2 point to 2,168. Meanwhile, tech heavy Nasdaq composite outperformed other indices and rose 3 points to 5,217.

The flurry of US economic data came ahead of the much-awaited and one of the most keenly watched US economic indicators, non-farm payrolls report on Friday, which would help investors to determine the Fed's monetary policy stance and determine the timing of next Fed rate-hike action. 

Meanwhile, renewed weakness in crude oil prices is also denting investor sentiment and weighing on equity markets.