Mixed picture for US equities Tax preparers H&R Block plunged in early trading on Thursday after the company said it would axe 350 employees and close 200 offices as it warned earnings would fall short of analysts" expectations. The accounting and financial services group dropped 12.3 per cent to $14.68 as it forecast revenues at about $2.9bn in the first quarter, falling short of consensus figures by $200m. Increased spending to compete against electronic providers of tax services such as Intuit "s TurboTax affected the company's bottom line as earnings are expected to come in between $1.09 and $1.15 per share for the three months to April 30 - well short of analysts" predictions of $1.42. The company with nearly 8,000 employees said it would expect the cost cuts to "realise net annualised savings of $85m to $100m by the end of fiscal year 2013." "Changes such as these are always difficult and we appreciate the hard work and dedication of all our associates," said Bill Cobb, president and chief executive. However, these steps are necessary so we can create a stronger company, invest in our future, and produce greater value for our clients and shareholders. Overall, the S&P 500 edged 0.1 per cent lower as fresh employment data showed that first time jobless claims declined by just 1,000 to 388,000, once again falling short of economist consensus expectations and further suggesting that the US labour recovery had stalled. The leading index had made strong gains a day before, with Apple carrying positive sentiment across the markets. Shares in the iPad and iPhone maker moved 0.4 per cent higher to $612.39 on Thursday, after gaining almost 9 per cent on Wednesday after it reported robust profits in its most recent quarter. Video game maker Electronic Arts jumped on reports that Nexon, a Japanese rival, was considering a takeover of the company. Electronic Arts rose 4.7 per cent to $15.71. Telecoms provider MetroPCS fell heavily after it reported first-quarter earnings that missed analysts" estimates, and left one analyst at Nomura saying that the results indicated the company was "a big mess." Shares in MetroPCS declined 11.3 per cent to $7.04. The Dow Jones Industrial Average added 0.1 per cent to 13,106.46 as the index tried to bounce back from its muted performance on Wednesday, when Caterpillar said its business in key emerging markets, Brazil and China, was slowing. Shares in the manufacturer of earthmoving equipment were flat at $103.45, having fallen almost 5 per cent the day before. The Nasdaq Composite Index was 0.2 per cent higher at 3,036.74.