U.S. Stocks Higher At The Start, Helped By Nokia
NEW YORK (MarketWatch) -- U.S. stocks opened at higher levels Thursday, bolstered by strong sales results from Nokia and Starbucks.
The Dow Jones Industrial Average was 34.7 points higher at 13,396.3.
The S&P 500 and the Nasdaq 100 were up 3.82 points at 1,469.63 and 10.01 points higher at 2,563.88.
On Wednesday stocks locked in hefty gains at the conclusion of a hectic session that saw numerous reversals of course for the major averages. Market sentiment fluctuated between optimism about strong corporate and economic fundamentals and anxiety about shaky credit market conditions and rising energy prices.
The emotional tug-of-war should carry over into Thursday's session, although the opening should benefit from some soothing comments about lending and mortgage market conditions from executives at top European banks, including Barclays plc. , Credit Suisse Group and Societe Generale .
"Executives of large European banks make a number of reassuring comments re the subprime situation," said Charles Campbell, senior sales trader at Miller Tabak.
"In order for fears of spillover to be lessened, investors will most likely need a series of reassuring comments from public companies and strong reports on the economy," he said.
The Labor Department reported that weekly jobless claims in the latest week rose 4,000 to 307,000, a level consistent with a healthy U.S. labor market.
The factory orders report for June is due at 10 a.m. Eastern.
Earnings parade
France's Societe Generale rose 4.8% in overseas trade after it reported a 33% rise in income and said it had only limited exposure to the subprime market.
Shares of Nokia Corp. were 7.2% higher. The company had a forecast-beating increased in quarterly profit and its highest operating margin in three years.
Viacom Inc. announced a decline in second-quarter profit, as results were hit by items, but strength in its filmed entertainment segment helped boost revenue for the media company. Earnings per share exceeded analysts' expectations.
Starbucks Corp. stock rose 1.4%. The company reported an in-line 9% profit rise with 20% sales growth.
Walt Disney & Co. was little moved after it reported a 5% profit rise and agreed to buy Club Penguin for $300 million.
Other corporate news
Mattel's said its Fisher-Price unit said it will recall toys that contain hazardous levels of lead paint.
Shares of Unilever rallied as much as 8% in London trade after the maker of Ben & Jerry's ice cream said sales for the year will hit the upper end of its target.
Other markets
Both the Bank of England and the European Central Bank, as expected, didn't change interest rates.
The U.S. dollar was a bit higher on the expectations for a strong opening in the stock market. It last traded up 0.3% at 119.24 yen as the euro fell just 0.01% to $1.3663.
Treasurys were little moved ahead of the factory orders data. The benchmark 10-year Treasury note was unchanged at 97-24/32 with a yield of 4.790%.
Gold futures edged slightly higher, as traders remained cautious amid the recent credit-related jitters on global equity markets. Gold for December delivery gained $1.90 at $677.80 an ounce.
The front-month crude futures contract extended prior session losses to trade down 20 cents at $76.33 a barrel.
By Leslie Wines