MARKET REPORT

Stocks seesaw on quarterly profit reports

A batch of U.S. company earnings drove stocks mostly higher Thursday.

The major stock indexes shifted between small gains and losses ahead of their scheduled close today for Good Friday. The gains kept the indexes ahead for the week, though they remained down for the month.

The market appeared set Thursday morning for its fourth-consecutive positive open this week, but immediately turned negative as investors sold shares in Google and IBM. The market heavyweights reported disappointing earnings late Wednesday. Earnings from toy-maker Mattel and insurer UnitedHealth also dragged down the market.

But by midmorning, the market started to push higher as traders cheered upbeat results from Morgan Stanley, General Electric and PepsiCo.

“We were expecting this earnings season to be pretty volatile, and it’s proven to be true so far, in that we’re seeing some differences in the results,” said Paul Mangus, head of equity research and strategy for Wells Fargo Private Bank.

By late afternoon, the Standard & Poor’s 500 index and Nasdaq composite were trending higher. While big drops inIBM and UnitedHealth helped keep the Dow Jones industrial average in the red.

The S&P 500 index rose 2.54 points, or 0.1 percent, to close at 1,864.85. Seven of the 10 industry sectors in the S&P 500 increased, led by energy stocks. The Nasdaq added 9.29 points, or 0.2 percent, to 4,095.52. The Dow, however, slipped 16.31 points, or 0.1 percent, to 16,408.54.

Bond prices fell, pushing up the yield on the 10-year Treasury note to 2.72 percent from 2.63 percent late Wednesday.

After selling off Internetand biotechnology companies last week on concerns the stocks were overvalued, investors turned their attention this week to how companies’ businesses are performing.

Investors have lowered their expectations for earnings after severe cold in much of the country this winter. That harsh weather weighed on everything from auto and home sales to hiring. Investors are now eager to hear what chief executive officers have to say about business prospects going ahead.

Thursday’s trading reflected buying and selling on earnings news, rather than a broader market theme taking hold, Mangus said.

“Going into this quarter, expectations are low, so if you disappoint on low expectations you’re likely to be penalized,” he said. “However, they also present the opportunity for some significant beats because the estimates are that low.”

Shares of social media company Weibo Corp. soared Thursday as the Chinese company made its initial public offering.

Started four years ago by Chinese online media company Sina Corp., Weibo provides a Twitter-like service that allows users to post a feed of up to 140 Chinese characters to share with others. Users can also attach photos and videos to their posts.

The company has 61.4 million average daily active users, according to its filing with the U.S. Securities and Exchange Commission.

Weibo raised $285.6 million, pricing 16.8 million American depositary shares at $17 each. That’s a smaller amount than anticipated. Weibo had projected an offering of 20 million shares priced between $17 and $19.

Its shares rose 19 percent to close at $20.24 Thursday.

Business, Pages 26 on 04/18/2014

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