Stocks were trading higher Thursday but showing little conviction as investors tried to make up their minds about a batch of moderately weaker economic data and some weaker earnings reports.
On Thursday, the Dow Jones industrial average was trading 13.35 points, or 0.10%, higher at 12,911.73. The broader S&P 500 index was up 1.52 points, or 0.11%, at 1,410.18. The tech-heavy Nasdaq composite index rose 6.16 points, or 0.25%, to 2,502.86.
CNET Networks Inc. (CNET), the Internet news provider, agreed to be acquired by CBS Corp. in a $1.8 billion deal that will give CNET shareholders $11.50 in cash for each CNET share they own. Standard & Poor's downgraded the stock to hold from buy.
Billionaire activist investor Carl Icahn confirmed that he's launching a proxy battle to oust Yahoo's (YHOO) board of directors after the technology company's "irrational" actions toward Microsoft's (MSFT) takeover bid. In a letter to Yahoo Chairman Roy Bostock, Icahn said he is nominating 10 directors, including himself. Yahoo shares were up 1.8%.
Speaking at a Chicago Federal Reserve conference Thursday, Fed chairman Ben Bernanke reiterated his recommendation that banks continue to raise capital and need to have a liquidity cushion for challenging times such as the current credit crunch. Bernanke said many banks aren't prepared to bring off-balance sheet investments onto their books if necessary.
Leading the day's economic data, U.S. industrial production fell 0.7% in April, below the median, while capacity utilization eased to 79.7% in April from 80.4% in March.
The headline May Empire State index fell to -3.2, lower than the anticipated 0.6 and down from 0.6 in April. The March headline was the lowest in the survey's seven-year history, but the notable rebound in April, and similar level in May, has left the index well above that level. This leaves the region's manufacturing sector continuing to perform better than what would be expected during a typical recession, Action Economics said.
The Philadelphia Fed index rose to -15.6 in May from -24.9% in April, better than the rise to -18.0 that was expected.
Initial jobless claims rose 6,000 to 371,000, slightly higher than the expected 370,000 level, in the week ended May 10. Initial claims have revealed volatile swings over the last two months, although figures over the last two weeks have been fairly close with the April average of 365,000. Continuing claims jumped 28,000 to 3.06 million, which leaves this series hovering at a new four-year high.
After approaching $127 in overnight trading, June WTI crude oil futures were up $1.48 per barrel to $125.70 but still eyeing the $130 level, which a lot of speculators have set as their strike price for options on the June contract that are due to expire on Thursday. Prices rose after UBS AG and Sanford C. Bernstein & Co. raised their 2008 price forecasts to reflect the 30% jump in oil since the year began, Bloomberg News said. An explosion in a gasoline pipeline in Lagos, which Radio Nigeria reported had killed dozens of people, was also a supportive factor.
Among other stocks in the news Thursday, Agilent Technologies Inc. (A) shares rose after the company reported Q2 GAAP EPS of 47 cents per share on a 10% revenue gain, at the high end of its outlook. Adjusted EPS of 51 was just above the top of the company's guidance of 46 to 50 cents per share. The maker of electronic and medical measurement devices sees third-quarter revenue of $1.44 billion to $1.49 billion and adjusted EPS of 52 to 56 cents, with fourth-quarter revenue expected to rise 8% to 17% from a year ago and adjusted EPS of 62 to 66 cents. S&P raised its estimate and target price and reiterated its hold rating.
CTrip.com International Ltd. (CTRP) shares fell on concerns over the impact of China's devastating earthquake on the company, which is a leading travel service provider in China. The company posted 52% higher net income in the first quarter on a 47% revenue rise on Thursday and expects second-quarter net revenue to grow by about 30%.
Major European indexes were trading mostly lower Thursday. In London, the FTSE 100 index rose 0.36% to 6,238.60. In Paris, the CAC 40 index shed 0.26% to trade at 5,041.97, and Germany's DAX index was down 0.28% at 7,063.50.
In Asia, Japan's Nikkei 225 climbed 0.94% to end at 14,251.74, while Hong Kong's Hang Seng index slipped 0.08% to 25,513.71.
Treasury market
Treasuries were mostly higher on Thursday in response to the weaker economic reports. The 10-year note moved up in price to 99-26/32 for a yield of 3.90%, while the 30-year bond slipped to 96-03/32 for a yield of 4.62%.