U.S. stocks drift lower as oil shaves gains

U.S. stocks ticked down in the morning session Thursday as oil prices pared early gains amid worries about a global supply glut.

By midday, the Dow Jones Industrial Average fell 25.51 points, or 0.16 percent, to 16,428.32. The S&P 500 lost 3.85 points, or 0.20 percent, to 1,922.97. The Nasdaq Composite Index was down 21.14 points, or 0.47 percent, to 4,512.92.

Oil prices shaved early gains to trade mixed around midday Thursday after government data showed a rise in U.S. crude stockpiles.

On Wednesday, oil prices rocketed after Iran supported output freeze deal proposed by top producers Russia and Saudi Arabia.

Persistent oversupply, bloated inventories and a slew of negative economic news dragged crude prices to 12-year lows.

On the economic front, in the week ending Feb. 13, the advance figure for seasonally adjusted initial claims was 262,000, a decrease of 7,000 from the previous week's unrevised level of 269,000, the U.S. Labor Department reported Thursday.

The 4-week moving average was 273,250, a decrease of 8,000 from the previous week's unrevised average of 281,250.

In corporate news, shares of Wal-Mart tumbled over 4 percent around midday Thursday after the company delivered quarterly earnings above market expectations but revenues shy of forecast. The world's largest retailer also lowered its estimate for sales growth in the fiscal year 2017.

On Wednesday, U.S. stocks surged for a third straight session, as Wall Street assessed spiking oil prices and the Federal Reserve's minutes amid mixed data. Endit