* 3M Co falls after earnings, outlook
* Initial jobless claims fall in latest week
* Verizon mulls bid for Verizon Wireless - sources
* Indexes up: Dow 0.05 pct, S&P 0.28 pct, Nasdaq 0.57 pct
By Chuck Mikolajczak
NEW YORK, April 25 U.S. stocks edged higher on
Thursday, as investors digested a raft of earnings and a drop in
initial jobless claims, though declines in Dow components
ExxonMobil and 3M Co capped the advance.
United Parcel Service Inc, considered an economic
bellwether, advanced 1.5 percent to $84.74 after the world's
largest package-delivery company reported a quarterly profit
above analysts' estimates.
Akamai Technologies Inc surged 18 percent to $42.59
as the best performer on the S&P 500 after the internet content
delivery company posted first-quarter earnings above Wall Street
estimates and forecast second-quarter results above analysts'
expectations late on Wednesday.
"Investors coming into this earnings season were quite
fearful, so even modestly positive news becomes great news and
that is what we've experienced for the last several days," said
Lawrence Creatura, portfolio manager at Federated Investors in
Rochester, New York.
"It's probably a little early in the earnings season to talk
about aggregate results but it's important to recognize that
earnings are growing and so higher prices are deserved."
But declines in ExxonMobil and 3M Co briefly dragged the Dow
into negative territory and curbed gains on the S&P 500.
ExxonMobil Corp dipped 1.4 percent to $88.15. The
largest U.S. company by market capitalization said its quarterly
profit edged up, helped by its chemicals business, but oil and
gas production fell.
Fellow Dow component 3M Co lost 3.7 percent to
$103.86 after the diversified U.S. manufacturer posted
first-quarter earnings and revenue that missed Wall Street
expectations and cut its 2013 profit forecast.
Economic data showed initial claims for state unemployment
benefits in the latest week dropped 16,000 to a seasonally
adjusted 339,000 versus expectations for 351,000.
The Dow Jones industrial average gained 8.02 points,
or 0.05 percent, to 14,684.32. The Standard & Poor's 500 Index
added 4.48 points, or 0.28 percent, to 1,583.27. The
Nasdaq Composite Index rose 18.60 points, or 0.57
percent, to 3,288.25.
Cliffs Natural Resources Inc jumped 14 percent to
$20.78 after the iron ore and metallurgical coal miner posted
earnings late on Wednesday that were much better than analysts
Qualcomm Inc lost 5.4 percent to $62.43 after the
mobile chipmaker forecast earnings below expectations late
Companies expected to post earnings after the close include
Amazon.com Inc and Starbucks.
Verizon Communications Inc rose 2.1 percent to $52.87
after sources told Reuters it has hired advisers to prepare a
possible $100 billion cash and stock bid to take full control of
Verizon Wireless from joint venture partner, Vodafone Group Plc
Earnings season has been largely positive, with 68.4 percent
of S&P 500 companies that have reported results through
Wednesday morning beating expectations, according to Thomson
Reuters data through Tuesday morning. Since 1994, 63 percent
have surpassed estimates on average, while the beat rate is 67
percent for the past four quarters.
Analysts see earnings growth of 3.1 percent this quarter, up
from expectations of 1.5 percent at the start of the month.
Revenues, however, have been disappointing, with only 40.1
percent of 119 reported companies having topped expectations,
well short of the 62 percent average since 2002 and the 52
percent beat rate for the past four quarters.