(Corrects paragraph 7 to remove extra word "to" before "a
surprising 16,000" to read "dropped a surprising 16,000")
* Data points to recovery in U.S. jobs market
* Verizon rises on Reuters report of possible wireless bid
* 3M Co falls after earnings, outlook
* Indexes up: Dow 0.5 pct, S&P 0.7 pct, Nasdaq 0.9 pct
By Caroline Valetkevitch
NEW YORK, April 25 U.S. stocks rose on Thursday,
boosted by gains in shares of materials companies, including
iron ore producer Cliffs Natural Resources Inc, and by a
drop in weekly jobless claims.
Cliffs jumped 20.6 percent to $21.97 after it posted
earnings late on Wednesday that were much better than analysts
had estimated. The S&P 500 materials index
was up 1.4 percent.
Telecommuncations companies also rose following gains in
Verizon Communications Inc. The stock 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
Companies reporting results in the past 24 hours lifted the
growth forecast for S&P 500 companies quarterly earnings to 3.6
percent. At the start of the reporting period the forecast was
growth of just 1.5 percent.
Investors have closely watched earnings to see if they would
be enough to extend the market's uptrend that began at the start
of the year, especially since recent economic data has suggested
slowing growth in March and early April. Worries about global
weakness have also hung over the market.
"Basic materials companies around the globe were worried
about potential slowdown in China, and now it looks like those
stocks have risen," Alan Lancz, president of Alan B. Lancz &
Associates Inc., an investment advisory firm in Toledo, Ohio.
Thursday's U.S. data supported an upbeat view of the
economy, however. Initial claims for state unemployment benefits
in the latest week dropped a surprising 16,000 to a seasonally
adjusted 339,000 versus expectations for 351,000.
The Dow Jones industrial average was up 78.16 points,
or 0.53 percent, at 14,754.46. The Standard & Poor's 500 Index
was up 11.02 points, or 0.70 percent, at 1,589.81. The
Nasdaq Composite Index was up 28.70 points, or 0.88
percent, at 3,298.35.
United Parcel Service Inc, considered an economic
bellwether, advanced 2 percent to $85.14 after the world's
largest package-delivery company reported a quarterly profit
above analysts' estimates.
Akamai Technologies Inc surged 19.1 percent to $43
as the best performer on the S&P 500 after the Internet content
delivery company posted first-quarter earnings above Wall Street
estimates late on Wednesday and also forecast second-quarter
results above analysts' expectations.
But Exxon Mobil Corp and 3M Co bucked the trend as their
Exxon fell 1.1 percent to $88.48. The largest U.S.
company by market capitalization said its quarterly profit edged
up, helped by its chemicals business, but oil and gas production
Fellow Dow component 3M Co lost 2.4 percent to
$105.29 after the diversified U.S. manufacturer posted
first-quarter earnings and revenue that missed Wall Street
expectations and cut its 2013 profit forecast.
(Editing by Bernadette Baum and Kenneth Barry)