New York ? Conflicting signals on inflation kept stocks mixed Thursday as investors abandoned riskier stocks and moved to safer blue-chip companies. A sharp drop in oil prices helped limit Wall Street’s losses.

A surprising increase in first-time jobless claims unnerved the market but also eased fears among some investors that inflation would rise as more workers enter the job market. The Labor Department reported a jump of 17,000 claims last week, to 327,000 — the highest level in two months.

Inflation worries were bolstered, however, as the dollar fell to a nine-week low against the euro. That stole momentum from crude oil prices — another inflationary concern — which fell after Wednesday’s rise.

“This appears to be a fairly defensive market … while investors figure out what to do next,” said Stuart Freeman, chief equity strategist for A.G. Edwards & Sons. “I think the market is still jittery about inflation.”