By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks edged lower on Thursday, as investors seemed fixated on interpreting Federal Reserve Chairwoman Janet Yellen's comments regarding the timing of interest rates hikes.

Investors will focus on a number of economic reports to get a sense of economic growth. Before the opening bell, a Labor Department report showed a smaller increase in weekly unemployment benefit applications than expected, with the four-week average at the lowest level since the end of November.

The S&P 500 (SPX) was 5.8 points, or 0.3%, lower at 1,855.15. The Dow Jones Industrial Average (DJI) dropped 56.90 points, or 0.4%, to 16,166.20.

The Nasdaq Composite (RIXF) shed 19.25 points, or 0.5%, to 4,288.31.

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Markets fell on Wednesday after Federal Reserve Chairwoman Janet Yellen said rate hikes could happen about six months after the central bank ends its bond purchases. At the current pace of tapering, this timeline indicates a rate increase as early as spring 2015.

At 10 a.m. Eastern Time, a trio of releases are due, with the Philly Fed index likely to get the most attention. The manufacturing index is forecast to rise to 3.5 points in March from a negative 6.3 in February, and the release could offer more clues on how much bad weather hurt the economy earlier in 2014. Any number above zero indicates more manufacturers are expanding instead of scaling back their business.

Existing-home sales are also on tap, expected to show a slight dip for February, partly due to the harsh weather but also owing to higher mortgage rates compared to last summer.

Leading economic indicators for February may show a move lower to 0.2% from 0.3%.

Burlington Stores, Guess report earnings

Burlington Stores Inc. (BURL) advanced 12% ahead of the open after the clothing retailer reported adjusted earnings per share ahead of expectations.

Scholastic Corp. (SCHL) dropped 5% even as the publishing, education and media company said its fiscal third-quarter loss narrowed thanks to a favorable settlement of federal tax audits.

Guess Inc. (GES) slid 5.8% in early trading Thursday after the fashion retailer's outlook fell short of Wall Street estimates. The company reported its fourth-quarter earnings on Wednesday after the market close.

Lennar Corp. (LEN) rose 0.5%, after the home builder reported earnings that beat expectations and said it remains optimistic about the U.S. housing market.

ConAgra Foods Inc. (CAG) added 1.2% after the packaged-foods company reported a rise in fiscal third quarter profit.

Shares in Walter Energy (WLT) tumbled 14% after the company doubled the size of its 5-year 9.5% senior secured note sale to $200 million along with the sale of $350 million in second lien PIK toggle notes due in 2020, according to Dow Jones.

Reporting after the market close on Thursday, Nike Inc. (NKE) is forecast to post fiscal third-quarter earnings of 72 cents a share.

Elsewhere, European and Asian markets were bruised by the rate-hike signal, while most commodities, including oil and gold, moved lower.

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