Choppy trading ends with modest gains

NEW YORK - Companies are now about halfway through first-quarter earnings reports, but Wall Street demonstrated yesterday that it still is not sure where the economy is headed.

The Dow Jones industrials closed with a late gain of about 70 points, or 0.9 percent, but only after another day of shaky, back-and-forth trading. It was almost the opposite of Wednesday's pattern, when stocks waffled throughout the day and then sank late in the afternoon.

The market's movement over the last week - choppy, but sticking within a fairly narrow range - indicates that investors are largely hopeful but still cautious after driving stocks up more than 20 percent from March's 12-year lows.

Earnings yesterday from several leading companies moved the market, including Apple Inc., eBay Inc., and PNC Financial Services Group. PNC's results helped lift other bank stocks, including JPMorgan Chase & Co., Bank of America Corp., and Wells Fargo & Co.

Poor results from other companies though, such as UPS Inc. and steelmaker Nucor Corp., signaled trouble, and the day's economic data were downbeat. Sales of existing homes fell 3 percent in March, and claims for new and continuing unemployment benefits rose last week.

Meanwhile, a big unknown still looms over the market: The results of the government's "stress tests," which will measure banks' ability to survive severe loan losses. The Federal Reserve is expected to explain its methodology for the tests today and release results May 4.

"The most important thing that everybody's looking for is clarity - good, bad, or indifferent," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group L.L.C.

The Dow gained 70.49, or 0.89 percent, yesterday to close at 7,957.06, making up most of Wednesday's loss of 82.99 points.

Broader stock indicators also finished moderately higher. The Standard & Poor's 500 index rose 8.37, or 0.99 percent, to 851.92, and the Nasdaq composite index rose 6.09, or 0.37 percent, to 1,652.21.

The Russell 2000 index of smaller companies, however, fell 4.09, or 0.87 percent, to 466.62.

Light, sweet crude rose 77 cents to close at $49.62 a barrel on the New York Mercantile Exchange.