Stocks sharply pared losses on Thursday as traders cited a Dow Jones report that the IMF is considering providing a loan to Spain if the country is unable to bail out troubled bank Bankia.

The Dow Jones industrial average <.DJI> dipped 1.10 points, or 0.01 percent, to 12,418.76. The S&P 500 Index <.SPX> lost 3.18 points, or 0.24 percent, to 1,310.14. The Nasdaq Composite <.IXIC> fell 12.40 points, or 0.44 percent, to 2,824.96.

(Reporting By Edward Krudy, editing by Dave Zimmerman)