By Chris Dieterich and Tomi Kilgore
Most stocks erased early declines and turned higher Thursday
after upbeat manufacturing data, though weak earnings from a
handful of blue-chip stocks pressured the Dow Jones Industrial
Average.
The Dow slipped 12 points, or 0.1%, to 16411 in midmorning
trading.
The S&P 500 added one point, or 0.1%, to 1862 and the Nasdaq
Composite Index rose 15 points, or 0.4%, to 4100.
Stocks have bounced back in recent days after a selloff in
technology and biotechnology stocks helped drag the Nasdaq
Composite down 8.2% through Friday from March 5, when it closed at
a 14-year high. The Dow finished last week at a two-month low.
Buyers have stepped into the market this week to stabilize the
hardest hit sectors. Major benchmarks have risen for three days in
a row.
"The market had pulled back, but it wasn't frenzied selling,"
said Dan McMahon, director of equity trading at brokerage firm
Raymond James.
Still, some long-term investors say they're having a hard time
finding stocks that are attractively priced. Despite the recent
volatility, the S&P 500 closed Wednesday 1.5% below its April 2
record high of 1890.90.
Mark Travis, president of Intrepid Capital Funds, which oversees
$1.5 billion in Jacksonville Beach, Fla., said his firm is sitting
on a pile of cash nearly on par with levels reached in 2008.
"Prices have been bid up for very stable, in-demand,
cash-generating businesses," Mr. Travis said. "We're having a hard
time [finding stocks to buy] on a valuation basis," he said.
Corporate earnings were in focus, with a raft of companies
posting their quarterly results.
Google fell 3.3% after reporting late Wednesday earnings that
missed analyst estimates, as the amount advertisers pay per click
continued to decline.
IBM slumped 4% after the technology giant's first-quarter
earnings matched estimates but revenue declined more than expected
on continued declines in hardware sales.
UnitedHealth Group tumbled 3% after the insurer's first-quarter
earnings fell 7.8%, hurt by government cuts to Medicare Advantage
programs and new taxes resulting from the Affordable Care Act.
The tone was upbeat for investment banks. Goldman Sachs gained
0.5% after the investment bank's first-quarter earnings and revenue
declined from year-ago levels, but exceeded analyst forecasts.
Morgan Stanley rallied 3.4% after exceeding earnings and revenue
forecasts, helped by strength in its trading business.
On the economic front, initial claims for jobless benefits in
the latest week increased by 2,000 to 304,000, versus expectations
of a rise to 315,000. The previous week's total was revised up
slightly from 300,000, the lowest level seen since 2007, to
302,000.
The Philadelphia Federal Reserve's index of manufacturing
activity for April jumped to the highest reading since September,
to 16.6, from 9.0 in March.
General Electric rose 1.5% as first-quarter operating earnings
fell, but topped analyst estimates amid strength in its industrial
business.
DuPont slipped 0.7% after missing earnings and revenue
forecasts.
American Express slipped 2% after beating earnings estimates but
missing on revenue.
BlackRock declined 2.3% even after its earnings handily topped
Wall Street views, as revenue jumped and investors poured money
into its mutual funds.
The U.S. stock market is closed Friday for Good Friday.
The yield on the 10-year Treasury note ticked up to 2.652% from
2.637% late Wednesday.
Gold futures eased 0.3% to $1299.10 a troy ounce, while
crude-oil futures added 0.6% to $104.41 a barrel. The dollar lost
ground against the euro and the yen.
European markets advanced, with the Stoxx Europe 600 gaining
0.3%.
Asian markets were mixed. Japan's Nikkei Stock Average was
little changed, pausing after a 3% run-up in the previous session,
while China's Shanghai Composite gave up 0.3%.
Write to Tomi Kilgore at tomi.kilgore@wsj.com