Wall Street edges up as data offsets profit fears

NEW YORK (Reuters) - Stocks edged higher on Thursday as economic data was not as bad as some had feared, although concern over corporate results persisted as FedEx and other companies warned of tough times ahead.

Ingersoll Rand Co Ltd fell 2.1 percent after the diversified manufacturer cut fourth-quarter and full-year 2008 revenue and earnings estimates, citing weakness in Europe.

Package delivery company FedEx gave a gloomy picture of the economy next year and said it was cutting costs, but reported a rise in quarterly profit, sending its shares up 1.9 percent.

The number of U.S. workers filing new claims for jobless benefits fell last week, Labor Department data showed, but despite the decline, claims remain exceptionally high and are more than 200,000 higher than a year ago.

"We're historically oversold by any measure," said Tom Alexander, head of Alexander Trading, in Savannah, Georgia.

"There was incredible mass liquidation across the board regardless of underlying fundamentals, so maybe we're getting back to a market that's driven by something resembling normal fundamentals."

The Dow Jones industrial average <.DJI> edged up 12.82 points, or 0.15 percent, at 8,837.16. The Standard & Poor's 500 Index <.SPX> added 4.01 points, or 0.44 percent, to 908.43. The Nasdaq Composite Index <.IXIC> rose 7.26 points, or 0.46 percent, to 1,586.57.

In the auto sector, General Motors said it has not reopened merger talks with Chrysler LLC, denying a Wall Street Journal report that talks had been restarted.

The White House said that it was nearing a conclusion on the bailout package automakers are seeking as they struggle to cope with slumping demand and weakening consumer spending. GM was down 3.7 percent at $4.21.

The energy sector led the way down as the price of oil slid to around $38 a barrel despite OPEC's record output cut, while U.S. inventories of oil swelled. The January futures contract is set to expire on Friday.

Chevron , down 1.1 percent at $75.95, and Exxon Mobil , off 0.6 percent at $80.59, were the Dow's top drags while the S&P energy index <.GSPE> was down 1.7 percent.

FedEx rose 1.9 percent to $65.18, while Ingersoll Rand was down 2.1 percent at $16.01.

Pentair cut fourth-quarter earnings expectations and said it would cut over 10 percent of its workforce and close facilities to cut costs. Pentair, which makes filters and electrical enclosures, was down 3.1 percent at $24.13.

On the Nasdaq, Take-Two Interactive Software tanked more than 26 percent to $8.90 after the video game publisher reported a quarterly loss and issued a 2009 forecast that fell short of expectations.

The Philadelphia Federal Reserve Bank reported that factory activity in the U.S. Mid-Atlantic region contracted in December but at a less severe rate than in the previous month.

(Editing by James Dalgleish)

WhatsAppFacebookTwitterLinkedinBeloudBluesky