Profits lift market but credit concerns persist
NEW YORK (Reuters) - Stocks rose on Thursday, buoyed by a fresh batch of strong earnings, though further signs of distress in the mortgage market kept investors on edge.
Pharmacy chain CVS Caremark Corp. (CVS.N) and MTV networks-owner Viacom Inc. (VIA.N) (VIAb.N) were among companies that posted results that topped Wall Street's expectations, sending their shares higher.
But credit concerns persisted, keeping a lid on gains. Accredited Home Lenders Holding Co. LEND.O, a subprime lender in the process of being sold, raising concern about its ability to stay in business. Its shares plunged 37.3 percent to $5.15 on the Nasdaq.
"We've had a barrage of impressive earnings reports. Every day there are companies with reports that support the market," said Bucky Hellwig, senior vice president at Morgan Asset Management in Birmingham, Alabama.
"But any trickle of negative news regarding what the ultimate outcome will be with the whole debt market, the spread products, the mortgages can quickly offset that."
The Dow Jones industrial average .DJI was up 51.54 points, or 0.39 percent, at 13,413.91. The Standard & Poor's 500 Index .SPX was up 2.52 points, or 0.17 percent, at 1,468.33. The Nasdaq Composite Index .IXIC was up 15.07 points, or 0.59 percent, at 2,568.94.
Hewlett-Packard Co. (HPQ.N) led the S&P and was among the top boosts to the Dow, after UBS raised its price target on the computer and printer maker. HP's stock was up 2.5 percent at $47.88.
Helping push the Nasdaq higher was news electronic payment company CheckFree Corp. CKFR.O is being bought for $4.4 billion in cash. CheckFree shares jumped 23.2 percent to $45.39.
In a further sign of deteriorating credit conditions, bond insurer MBIA said delinquencies among some subprime home loans that are serviced by Countrywide Financial Corp. CFC.N are rising. Countrywide's shares fell 2.4 percent to $26.54.
Shares of Viacom, owner of MTV Networks, Paramount movie studios and Nickelodeon cable channels, rose 1.3 percent to $38.48, while CVS' shares gained 4 percent to $36.97, both on the New York Stock Exchange.
Stocks trimmed gains after a government report showed new orders at U.S. factories rose less than expected in June. Stripping out the volatile transportation sector, the index fell slightly.
