Stocks advance on better-than-estimated corporate earnings

Several economic reports on Thursday provided the impetus for a rebound in stock prices.

The Dow Jones Industrial Average gained 26.34 points to 13,103.68. The Nasdaq Composite Index was up 4.42 points to 2,986.12 and the S&P 500 Stock Index added 4.22 points to 1,412.97.

The Department of Labor reported initial claims for jobless benefits declined by 23,000 in the past week to 369,000. The Commerce Department said durable goods orders rose by 9.9 percent in September as the result of a surge in commercial aircraft orders.

After the close of trading on Thursday Apple reported earnings and revenues slightly below expectation.

Commodities were also higher. Gold gained $11.40 to $1,713 an ounce and oil rose 32 cents to $86.05 a barrel.

Procter & Gamble Co. (NYSE: PG), the largest consumer-products maker, rallied 2.9 percent after reporting profit that topped analysts’ projections. A measure of homebuilders in S&P indexes declined 1.7 percent as Americans signed fewer contracts than forecast to buy previously owned homes. Apple Inc. (Nasdaq: AAPL) fell 1.3 percent after profit missed analysts’ predictions.

“The market is zigzagging each day on earnings,” said Paul Zemsky, the N.Y.-based head of asset allocation for ING Investment Management, which oversees $170 billion. He spoke in a telephone interview. “Earnings did come out better than estimated yet revenue surprises are negative.”

Fifty-four companies in the S&P 500 were scheduled to release results Thursday. Third-quarter earnings at about 71 percent of the index’s companies beat analysts’ estimates, according to data compiled by Bloomberg. Sales missed forecasts at 60 percent of companies, the data showed.

The S&P 500 fell 1.8 percent over the previous two days amid concern about a worsening earnings picture. The index is still up 12 percent this year on speculation central bankers will keep economies expanding.

“The market is trying to digest a lot of reports,” said Walter Todd, who oversees about $940 million as chief investment officer of Greenwood Capital in Greenwood.

Symantec Corp. (Nasdaq: SYMC) rose 6.7 percent to $18.54. The security- software maker forecast sales that topped projections. Symantec is doing a better job now at signing up customers at a time of sluggish spending by corporations and weak personal-computer sales, said Daniel Ives, an analyst at FBR Capital Markets & Co.

Casino companies rallied as Wynn Resorts Ltd. (Nasdaq: WYNN) added 7.3 percent to $120.43. The owner of casinos in Nevada and Macau reported profit that beat forecasts and doubled its dividend. MGM Resorts International (NYSE: MGM) advanced 2.3 percent to $10.88, while Las Vegas Sands Corp. (NYSE: LVS) increased 4.4 percent to $46.25.

Akamai Technologies Inc. (Nasdaq: AKAM) surged 6.7 percent to $38.54. The company reported sales and earnings beat estimates. Akamai was also raised to outperform from market perform at Oppenheimer & Co. by equity analyst Timothy Horan. The 18-month target price is $50 per share.

ConocoPhillips (NYSE: COP) gained 2.2 percent to $57.16. The company excluding one-time costs and gains was $1.44 a share, 25 cents more than the average of 18 analysts’ estimates compiled by Bloomberg.

Angie’s List (Nasdaq: ANGI) advanced 27 percent to $11.56. The consumer- review website jumped after reporting sales that beat estimates as more members paid to use the service.

McKesson Corp. (NYSE: MCK) increased 4.1 percent to $93.16. The drug distributor agreed to purchase PSS World Medical Inc. (Nasdaq: PSSI) for about $2.1 billion to expand in providing medical supplies and services. PSS World surged 32 percent to $28.57.

Amazon.com Inc. (Nasdaq: AMZN) fell 0.7 percent to $221.28 after the close of regular trading. The company reported revenue that missed estimates and posted its first quarterly net loss since 2003, dragged down by weakness at LivingSocial.com, which it partly owns.

Nine out of 11 stocks in a measure of homebuilders in S&P indexes retreated. PulteGroup Inc. (NYSE: PHM) dropped 2.5 percent to $17.01. Toll Brothers Inc. (NYSE: TOL) retreated 3 percent to $34.21.

Cliffs Natural Resources Inc. (NYSE: CLF) plunged 11 percent to $38.20 as the company reported third-quarter results that missed analysts’ estimates.

Best Buy Co. (NYSE: BBY) dropped 10 percent to $15.17. The retailer resisting a takeover attempt by its founder said fiscal third- quarter profit will be “significantly” below last year’s results as sales at established stores continue to decline.