NEW YORK >> Wall Street snapped a five-day losing streak today, sending stocks modestly higher after positive earnings from companies such as Texas Instruments enticed investors to pick up bargains. Stocks bid higher
in cautious tradingAssociated Press
Trading was choppy, as investors struggled to decide whether to buy stocks despite concerns about a war with Iraq. Negative profit outlooks in recent days added to the caution.
"Texas Instruments is helping technology across the board," said Alfred E. Goldman, chief market strategist at A.G. Edwards & Sons Inc. "A willingness to buy this group is evidence that people are starting to think maybe the economy will recover this year."
Advancing issues outnumbered decliners 9 to 5 on the New York Stock Exchange. Volume was moderate.
The Dow Jones industrial average rose 50.74, or 0.6 percent, at 8,369.47, having dropped nearly 501 points in the previous five sessions. Earlier in the day, blue-chip stocks fell as much as 62 points.
The broader market also finished higher. The Nasdaq composite index climbed 28.79, or 2.1 percent, to 1,388.27. The Standard & Poor's 500 index gained 8.98, or 1 percent, to 887.34. The Russell 2000 index rose 3.15, or 0.8 percent, to 383.68.
The price of the Treasury's 10-year note was down 5/32 point, while its yield rose to 3.94 percent from 3.92 percent late yesterday. Two-year Treasury notes were down 1/16 point and yielded 1.64 percent, up from 1.62 percent yesterday.
Texas Instruments gained $1.87 to $16.12 after the semiconductor maker's fourth-quarter results beat analysts' expectations. It also gave a first-quarter forecast that exceeds Wall Street's estimate.
Qualcomm climbed $1.24 to $37.93 after the telecommunications company reported quarterly earnings that beat Wall Street's estimates, citing higher demand for its products.
Two mixed economic reports released today added to the lackluster mood.
The Labor Department reported new claims for unemployment benefits rose by 18,000 last week, signaling a continuing weak economy.
And the New York-based Conference Board said the Index of Leading Economic Indicators increased 0.1 percent in December to 111.3. The index rose 0.5 percent in November.
Analysts say investors have been hesitant to commit to stocks. "The number one concern is Iraq," Goldman said. "The minor players are earnings, and also more important, because those (earnings) are ancient history, is the fact that corporate CEOs are generally speaking rather cautiously about the outlook."
McDonald's fell 36 cents to $15 after the burger giant announced its first quarterly loss.
Japan's Nikkei stock average finished 2.1 percent higher. In Europe, France's CAC-40 dropped 0.5 percent, Britain's FTSE 100 lost 1.5 percent and Germany's DAX index rose 0.3 percent.
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