NEW YORK (CNN/Money) - A much stronger than expected weekly unemployment claims reading, Cisco's stellar earnings report and a big gain in productivity in the third quarter failed to ignite a stock market rally Thursday, leaving the market narrowly mixed.

About five minutes after the start of trading, the Nasdaq composite (up 4.08 to 1963.45, Charts) rose about 0.5 percent, bolstered by Cisco's results. The Dow Jones industrial average (down 35.19 to 9785.64, Charts) and the Standard & Poor's 500 (down 2.51 to 1049.30, Charts) tipped lower.

Cisco (CSCO: up $1.12 to $22.92, Research, Estimates), the top maker of Internet routers, posted fiscal first-quarter results late Wednesday that surged above analysts' estimates for earnings and sales. The company, whose shares lifted 5 percent, also said it's seeing signs of a pickup in business, the most optimistic it has been this year.

Investors also got positive economic news early Thursday.

The Labor Department said jobless claims fell to 348,000 in the week ended Nov. 1, from a revised 391,000 in the prior week. The number was the lowest level since January 2001. It came a day before the eagerly awaited October employment report Friday. Economists expect the unemployment rate to hold at 6.1 percent, but think 65,000 new jobs were created in the month. Anticipation for this report kept some investors on the sidelines early Thursday.

The government also said an initial reading on third-quarter productivity showed a rise of 8.1 percent from the second quarter, less than the 8.5 percent gain expected by economists, but up significantly from the 6.8 percent gain in the prior quarter.

Also on investors' minds were comments expected from Federal Reserve Board Chairman Alan Greenspan. The Fed Chairman was set to address the Securities Industry Association in Boca Raton, Fla. His comments will be gleaned for signs that the most recent reports indicate an economic turnaround -- or that he's not quite ready to declare the recovery that some economists see.

Investors will be watching closely after the Bank of England decided to raise its target rate by a quarter percentage point to 3.75 percent Thursday, the first hike in nearly four years. Some investors were concerned whether the British hike could mean similar action was on its way in the United States.

European markets traded higher in the afternoon there. Asian-Pacific stocks ended mostly lower Thursday, with Tokyo's Nikkei index slumping 2.6 percent

In other corporate news, mobile chip maker Qualcomm (QCOM: up $0.39 to $46.98, Research, Estimates) rose after the telecom equipment maker posted a 53 percent increase in fiscal fourth-quarter profit, and said its fiscal first-quarter profit is likely to beat Wall Street's estimates.

Also, several retailers were set to report monthly chain-store sales for October.

Treasury prices fell, with the 10-year note losing 12/32 to yield rising to 4.40, up from 4.35 percent late Wednesday. The dollar rose against the yen and euro.

Brent oil futures rose 20 cents to $28.59 a barrel in London. COMEX gold fell $2.80 to $379.90 an ounce.