It was a mixed close for the markets as retreating oil prices tempered news of an unexpected jump in jobless claims. The Dow gained 33 points to 11,221 while Nasdaq eased 3 points to 2256.

On the upside

Second quarter earnings for Ulta Salon, Cosmetics & Fragrance (Nasdaq: ULTA) soared to top estimates as sales climbed.

Bank of America (NYSE: BAC), Citigroup (NYSE: C) and Wachovia (NYSE: WB) are among nine banks that have agreed to settle federal and state inquiries into auction rate securities sales by buying back more than $50 billion of securities.

Although Morgan Stanley analyst Nigel Dally downgraded American International Group (NYSE: AIG) over liquidity concerns, shares of the world's largest insurer rose.

On the downside

Although ABM (NYSE: ABM) posted higher third quarter earnings, the company lowered its full year outlook.

Brazil's rejected Gilead Sciences' (Nasdaq: GILD) patent request for its AIDS treatment Tenofovir saying that the drug lacked technological inventiveness.

Copper prices dropped to a seven month low to weigh down shares of Freeport-McMoRan Copper & Gold (NYSE: FCX).

In the broad market, advancing issues barely edged out decliners by a slim margin on the NYSE while decliners outpaced advancers by nearly 9 to 7 on Nasdaq. The Russell 2000 which tracks small cap stocks edged up a fraction to 719.