US benchmark equity indexes closed mixed Thursday as markets assessed the latest labor market data and awaited the official jobs report for January.

The Nasdaq Composite rose 0.5% to 19,792, while the S&P 500 increased 0.4% to 6,083.6. The Dow Jones Industrial Average fell 0.3% to 44,747.6. Among sectors, consumer staples and financials led the gainers, while energy saw the biggest drop.

In economic news, weekly applications for unemployment insurance in the US rose more than expected, the Department of Labor reported.

US-based employers cut 49,795 jobs last month, up 28% from December, but down 40% annually, Challenger Gray & Christmas said.

On Friday, data from the Bureau of Labor Statistics is expected to show that the US economy added 170,000 nonfarm jobs last month, which would mark a slowdown from the 256,000 gain posted for December, according to a Bloomberg poll.

"The lack of clear weakness in the labor market, coupled with stalling progress in disinflation, prompted the (Federal Reserve) to take a seat on the sidelines at the start of the year, perhaps for a prolonged period of time," Stifel said in a Thursday note to clients. "Going forward, any further strength in hiring or acceleration in price pressures will work to reinforce the committee's steady position."

Late last month, the central bank's Federal Open Market Committee kept interest rates unchanged following three consecutive cuts and said inflation remained "somewhat elevated."

The US two-year yield rose 2.7 basis points to 4.21% Thursday, while the 10-year rate added 1.6 basis points to 4.44%.

In company news, Tapestry (TPR) shares jumped 12%, the top gainer on the S&P 500, as the luxury fashion company raised its full-year revenue outlook after logging stronger-than-projected sales in the holiday quarter.

Philip Morris International (PM) issued an upbeat full-year earnings outlook as the tobacco company reported fourth-quarter results above market expectations amid robust demand for its smoke-free products and ZYN nicotine pouches. Its shares surged nearly 11%, the second-best performer on the S&P 500.

Honeywell International (HON) saw the biggest drop on the Dow and the Nasdaq, down 5.6%. The industrial conglomerate announced plans to split into three publicly listed entities as part of its goal to optimize its portfolio. The company issued a downbeat full-year outlook despite beating market expectations for the fourth quarter.

West Texas Intermediate crude oil dropped 0.7% to $70.58 a barrel.

The US Treasury Department announced sanctions against an international network for allegedly facilitating Iranian crude oil shipments to China that the Treasury said were worth "hundreds of millions of dollars."

Gold fell 0.4% to $2,881.50 per troy ounce, while silver dropped 0.9% to $32.69 per ounce.