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NEW YORK - The Nasdaq rose on Thursday with results from Qualcomm Inc and other companies creating some optimism about corporate profits, while the broader market was flat amid uncertainty about a stimulus package.
Worries that the market has yet to find a bottom also kept stocks' gains in check. On Wednesday, stocks snapped a five-day losing streak, with the Dow turning around from a drop of almost 2 per cent to end up almost 300 points.
A bright spot was data on Thursday showing the number of US workers applying for jobless benefits fell unexpectedly last week to the lowest in four months, suggesting the labor market remained stable even as the economy slowed.
Qualcomm shares jumped 9.2 per cent to $US40.01, leading the major advancers in the Nasdaq and S&P 500, a day after the mobile phone chip maker posted a rise in quarterly profit. While the results just matched expectations, they signaled solid demand despite the weakening economy.
Earnings have been "a bit of a mixed bag, but there have been no shockingly alarming surprises to the downside, and that's good news," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
Kenny said investors were anxious for news on a stimulus package, adding that "the devil is always in the details."
The chairman of the US Senate Finance Committee said on Thursday the panel would meet next week to draft a US economic stimulus bill.
The Dow Jones industrial averagewas up 25.36 points, or 0.21 per cent, at 12,295.53. The Standard & Poor's 500 Index was up 3.28 points, or 0.25 per cent, at 1,341.88. The Nasdaq Composite Index was up 20.20 points, or 0.87 per cent, at 2,336.61.
"It's a market of 'doubting Thomases.' There is a lack of real faith in a turnaround," Kenny said.
On the downside, eBay Inc shares fell 6.3 per cent to $27.12 and kept gains in the Nasdaq and the S&P in check. The internet auctioneer and retailer warned about its profit outlook late on Wednesday.
Shares of Xerox Corp, the leading provider of digital printers and document management services, rose 7 per cent to $14.16 after it posted a better-than-expected rise in quarterly profit and said it was on track to meet its 2008 full-year profit forecast.
In other earnings news, Lockheed Martin Corp shares were up 3.5 per cent at $105.64, after the defence contractor reported a quarterly profit and raised its full-year forecast. (Editing by Jan Paschal)
- REUTERS
