By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Salesforce.com jumps on earnings beat; energy stocks sell off

NEW YORK (MarketWatch) -- U.S. stocks retreated from record levels as investors shifted their attention to a batch of weaker-than-expected economic reports on Thursday.

Consumer prices tumbled in January and inflation turned negative compared with 12 months ago. Falling inflation, largely due to a sharp drop in oil prices, increased real wages, however persistent disinflation could complicate the Federal Reserve's desire to begin normalizing interest rates sometime this year.

Weekly jobless claims jumped by more than expected, above 300,000 level. Meanwhile durable-goods orders were higher than expected.

The S&P 500 (SPX) edged lower with nearly all of its 10 main sectors in negative territory. Energy stocks were selling off in the wake of a drop in oil prices and weighed on the index. The Dow Jones Industrial Average (DJI) retreated from the record level it reached on Wednesday. More than half of its 30 components were trading lower, with Chevron Corp and Exxon Mobil leading the losses.

The Nasdaq Composite (RIXF) failed to hold on to earlier modest gains and moved lower.

Recent record levels on the main indexes prompted some analysts to ring alarm bells, calling the topping of the market.

Albert Edwards, chief global strategist at Société Générale, and a notoriously bearish strategist, pointed to a deteriorating economic picture and a growing disconnect between the stock market and economic reports, in a note to investors.

"With equity markets galore hitting record highs clearly I must be missing something big! We are at that stage in the cycle where I begin to doubt my own sanity. I've been here before though and know full well how this story ends and it doesn't involve me being detained in a mental health establishment (usually)," Edwards wrote.

Read: Stock gains are making us dangerously complacent (http://www.marketwatch.com/story/stock-market-gains-are-making-us-dangerously-complacent-2015-02-25)

Read: Opinion: Company executives are betting on this bull market (http://www.marketwatch.com/story/company-executives-are-betting-on-this-bull-market-2015-02-25)

(http://www.marketwatch.com/story/company-executives-are-betting-on-this-bull-market-2015-02-25)Stocks in focus: Salesforce.com Inc. (CRM) rose 11%. Late Wednesday, the software maker posted strong growth in deferred sales, which measures its future sales from a subscription-based business model.

Sears Holdings Corp. (SHLD) shares fell sharply after the retailer posted continuing quarterly sales losses (http://www.marketwatch.com/story/sears-targets-reit-formation-in-may-or-june-2015-02-26-6485296) and offered more details on a plan to convert assets into a real-estate investment trust.

Kohl's (KSS) shares were little changed after the retailer beat profit and sales estimates and raised its dividend. SeaWorld Entertainment Inc (http://www.marketwatch.com/story/what-to-expect-from-seaworlds-earnings-2015-02-25).(SEAS) fell more than 3%after its loss per share was worse than expected.

Herbalife Ltd.(HLF), J.C. Penney Co. Inc.(JCP), Gap Inc.(GPS) and Ross Stores Inc.(ROST) will report after the close.

Read: Herbalife, J.C. Penney, Kohl's earnings in focus (http://www.marketwatch.com/story/herbalife-jc-penney-kohls-earnings-in-focus-2015-02-26)

(http://www.marketwatch.com/story/herbalife-jc-penney-kohls-earnings-in-focus-2015-02-26)Other markets:European stocks (http://www.marketwatch.com/story/european-stocks-rise-as-german-unemployment-falls-2015-02-26) got a small lift from news of a fall in German unemployment, while Japanese stocks (http://www.marketwatch.com/story/japan-stocks-touch-15-year-high-again-2015-02-26) once again touched a 15-year high. Gold (http://www.marketwatch.com/story/gold-puts-janet-yellen-in-rearview-mirror-moves-higher-2015-02-26)(GCJ5) was looking at a second day of gains, up another $8 to $1,209.60 an ounce. Oil (http://www.marketwatch.com/story/oil-gives-back-some-gains-as-investors-weigh-up-supply-2015-02-26) futures (CLJ5) fell.

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