* Markit manufacturing data ahead of expectations
* Tesla shares soar after results, Wal-Mart falls
* Facebook shares drop; will buy WhatsApp for $19 bln
* Data from China weak, Ukraine turmoil continues
* Indexes up: Dow 0.2 pct, S&P 0.1 pct, Nasdaq 0.1 pct
By Ryan Vlastelica
NEW YORK, Feb 20 U.S. stocks edged higher in
volatile trading on Thursday, as a strong read on manufacturing
offset weak results from Wal-Mart and geopolitical and economic
uncertainty around the world.
Major indexes swung between slight gains and slight losses,
indicating markets lacked direction a day after the S&P 500's
biggest daily decline in more than two weeks.
U.S. factory activity accelerated at its fastest pace in
nearly four years in February, according to Markit's preliminary
U.S. Manufacturing Purchasing Managers Index, a bullish economic
indicator following a string of weaker-than-expected reports.
Investors have largely shrugged off tepid data, pinning
recent weakness to the impact of unexpectedly cold weather
rather than worsening fundamentals.
However, stocks fell on Wednesday after comments from the
Federal Reserve failed to reinforce the central bank's
commitment to stimulating the economy despite the recent
"The manufacturing data is extremely positive, especially
coming after a spate of bad news at a time when the Fed seems
committed to slowing stimulus," said Nicholas Colas, chief
market strategist at the ConvergEx Group in New York.
Wal-Mart Stores Inc was the Dow's bigger decliner,
falling 2.4 percent to $73.07 after the world's biggest retailer
reported a drop in U.S. same-store sales and gave an earnings
outlook below expectations.
Social networking giant Facebook said late Wednesday it
would buy mobile-messaging startup WhatsApp for $16 billion in
cash and stock, plus an additional $3 billion worth of
restricted stock units to WhatsApp's founders. Shares fell 3.3
percent to $65.83 in heavy trading.
On the upside, Tesla surged 9.5 percent to an all-time high
of $212.04 a day after it reported fourth-quarter results that
topped expectations and said deliveries of its luxury Model S
electric sedan would surge more than 55 percent this year.
The Dow Jones industrial average was up 26.33 points,
or 0.16 percent, at 16,066.89. The Standard & Poor's 500 Index
was up 2.02 points, or 0.11 percent, at 1,830.77. The
Nasdaq Composite Index was up 3.95 points, or 0.09
percent, at 4,241.91.
In other data, jobless claims fell less than expected in the
latest week, while consumer prices rose 0.1 percent in January,
as expected. Separately, factory activity in the U.S.
mid-Atlantic region unexpectedly contracted in February,
according to the Philadelphia Federal Reserve Bank's business
Turmoil in emerging markets continued, with Ukraine
experiencing some of its worst violence since the end of the
Cold War. The country's hryvnia currency dropped to near
five-year lows, while the country's state debt insurance costs
rose to their highest since December 2009.
Emerging market growth was also in view after China's flash
Markit/HSBC Purchasing Managers' Index fell to a seven-month low
in February, falling under the level that represents expansion.
"The market's strength is somewhat surprising given how weak
overseas markets have been," said Colas. "It is good to see
investors buying on dips, but I've also been hearing a lot more
Quanta Services Inc jumped 7.4 percent to $34.47 as
the S&P's biggest percentage gainer after reporting its
Safeway Inc rose 5.4 percent to $36.46 a day after
the supermarket chain said it was in talks about possibly
selling itself. The company also reported its fourth-quarter