U.S. stocks finished in the red Thursday as investors took a step back and digested mixed economic news and a slew of earnings reports.

The Dow Jones industrial average dropped 42 points, or 0.3%. The S&P 500 slipped 0.2% and the Nasdaq fell 0.1%. The major indexes were even lower earlier in the day.

Stocks have stalled this week after a strong start to the year. The Dow and S&P 500 are both up about 6% in 2013, and near their all-time highs. The Nasdaq has gained almost 5% so far this year.

"The market has pretty much gone in one direction since the beginning of the year so perhaps this is just a natural pause," said Kim Forrest, senior equity analyst at Fort Pitt Capital. "It's possible that investors are taking a break."

On the economic front Thursday, weekly initial jobless claims came in at 366,000, down 5,000 from the previous week but above forecasts.

Meanwhile, the nation's business productivity dropped 2% in 2012's fourth quarter, according to the Bureau of Labor Statistics, which was more than economists were expecting.

In corporate news, Akamai Technologies, which provides Internet content delivery, delivered weak fourth-quarter results and a disappointing revenue forecast. The lackluster news sent the company's stock plunging 15%, making it the biggest loser in the S&P 500 and Nasdaq-100.

News Corp was also a big laggard after the media giant issued a downbeat earnings forecast for the year.

And Green Mountain Coffee Roasters shares tumbled on the company's weak outlook for sales growth.

Sprint Nextel shares faltered after the cell phone carrier reported a fourth-quarter loss in line with expectations.