The market’s major indexes drifted in and out of positive territory as they had much of the week ahead of tomorrow’s employment report. The report, showing the number of new jobs created or lost during the month, is considered one of the most critical indicators of the economy’s health.

"There’s been a lot of speculation about where the number might come in and how the market might react, so it makes sense for this to be a bit of a directionless day," said Brian Pears, head equity trader at Victory Capital Management in Cleveland.

According to preliminary results, the Dow Jones industrial average, which traded in a narrow, 45-point band, closed down 5.11, essentially flat at 10,588.00.

The broader gauges were higher. The Nasdaq composite index advanced 21.76, or 1.1 percent, to 2,055.12, as gains among semiconductor stocks helped it finish in positive range after two down days.

The Standard & Poor’s 500 index was up 3.75, or 0.3 percent, at 1,154.79.

Traders who have traded listlessly for weeks as they awaited galvanizing economic or earnings data were again disappointed today. They seemed put off by a Commerce Department report that orders to U.S. factories fell by 0.5 percent in January. Weaker demand for transportation equipment, especially airplanes, pulled the overall number down. Excluding transport, factory orders rose 1.4 percent.

But there was some upbeat news: The number of new applications filed for unemployment benefits declined more than expected last week, the Labor Department said. The reading, considered an indicator of the level of layoffs, was seen as a sign that companies are feeling more confident about the economy.

Separately, the department said productivity of American workers grew at a modest 2.6 percent annual rate during the final three months of 2003. The reading matched analyst forecasts, but was slightly slower than the 2.7 percent pace estimated by the government last month.

The lack of significant employment growth has been a sticking point in the recovery. Although companies seem to be laying off fewer workers, they haven’t been in a rush to hire people back. Still, a Federal Reserve survey released yesterday found jobs are growing, albeit slowly, and economists remain optimistic.

Walt Disney Co. was up 15 cents at $26.80 after the company’s board voted to strip the title of chairman from chief executive Michael Eisner, who has been blamed for poor stock performance. The board reiterated its support of Eisner’s management team, and he is expected to stay on to fight a hostile takeover bid from Comcast Corp.

Comcast, which has refused to raise its offer, rose 31 cents to $30.71.