Mixed quarterly reports sent Wall Street lower at midday on Thursday, despite Tuesday’s interest rate cut and a Labor Department report that showed that new unemployment claims were down by 9,000 last week.

There was little indication from Federal Reserve chairman Ben Bernanke, in testimony before the House Financial Services Committee, of what if any further measures the Fed might take to further alleviate the repercussions from the credit crisis.

The Dow Jones Industrial Average dropped 0.13 percent to 13,797.35, while the Nasdaq Composite was down 0.18 percent to 2,661.71 and the S&P 500 was 0.27 percent lower to 1,524.96.

In the financial services sector, Goldman Sachs (NYSE: GS) gained $2.80 to $208.10 after it said its profits were up by 79 percent in the third quarter, a surprise considering the chaos in the subprime market.

While Bear Stearns (NYSE: BSC) saw declines after it said its profits fell by 62 percent in the quarter, it added $3.13 to $118.77 after its CFO said that the worst of the losses seems to be behind it.

Elsewhere, electronics retailer Circuit City was $1.81 percent lower to $8.76 after it reported losses in the quarter.

Most airlines were lower as oil prices remained near record levels and Goldman Sachs issued a warning that the sector could be subject to competitive pressures and a tough economy.

Continental Airlines (NYSE: CAL) was $1.02 lower to $32.66, while Alaska Air (NYSE: ALK) dropped 96 cents to $24.27.

AMR (NYSE: AMR), the parent of American Airlines, fell 70 cents to $23.92.

Goldman Sachs cut its rating on both AMR and Alaska Air from “neutral” to “sell”.

On the other hand, the broker raised its recommendation on Southwest Airlines (NYSE: LUV) from “sell” to “neutral”, sending Southwest’s shares 21 cents higher to $15.34.

New York equities markets were down at midday on Friday after a report from the US Commerce Department that August retail sales were down 0.4 percent when expectations for a gain of 0.1 percent had been anticipated.

The figures excluded auto sales.

Other, separate reports, showed industrial production up only 0.2 percent in August and September consumer confidence down according to the RBC Cash Index and only slightly higher in the Reuters/University of Michigan survey.

US markets were also disturbed by Northern Rock’s (LSE: NRK) troubles in the UK.

However, declines were limited by hopes that the Federal Reserve will cut US interest rates when it meets next Tuesday.

In midday trade, the Dow Jones Industrial Average had dropped 0.08 percent to 13,413.99, while the Nasdaq Composite was down 0.14 percent to 2,597.47 and the S&P 500 had fallen 0.15 percent to 1,481.79.

Despite the general declines, house builders were higher in light trading ahead of the Fed’s decision next week.

KB Home (NYSE: KBH) was 38 cents higher to $27.07, while D. R. Horton (NYSE: DHI) had added 39 cents to $14.15.

Lennar (NYSE: LEN) gained 43 cents to $25.50, Hovnanian Enterprises (NYSE: HOV) was up 51 cents to $10.54, Toll Brothers (NYSE: TOL) added 54 cents to $20.56, and Centex (NYSE: CTX) climbed 67 cents to $26.81.

Some airlines were also higher, despite oil prices that remained high even though there had been some decline from Thursday’s gains.

Alaska Air Group (NYSE: ALK) was $1.66 higher to $24.68 after it announced a stock buyback worth as much as $100 million, while Continental Airlines (NYSE: CAL) gained 24 cents to $32.70.

Most other US airlines also saw gains, but Northwest Airlines (NYSE: NWA) fell 2 cents to $17.50.