By NBC News staff and wires
Stocks rose Thursday, as technology companies' outlooks and earnings overshadowed weak economic data.
So far corporate earnings have been beating analysts' lowered expectations. The latest to boost the market, especially tech shares, were IBM's raised full-year outlook, forecast-beating earnings from eBay and Qualcomm's expectations for a "strong December quarter."
But a slew of weaker-than-expected economic data capped gains in the wider market. Manufacturing in the U.S. mid-Atlantic region shrank for a third month and home resales were lower than forecast. Data also showed more Americans applied for unemployment insurance than expected in the latest week.
"Europe has been quiet and earnings news, while not earth-shattering is slightly better than expected," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. "A trading range environment is how we see it."
Recent lackluster data has had a limited impact on the market as investors increasingly expect the Federal Reserve to step up stimulus efforts, possibly as early as the end of July.
There were also some worrying earnings. Morgan Stanley said quarterly revenue declined due to a slowdown in trading and dealmaking volumes. The company will cut 1,000 employees by the end of this year.
The S&P is at its highest level since early May. Some investors are pointing to a trading range between recent highs above 1,400 and a low in June around 1,280.
"People are focusing on individual stocks after earnings and trying to figure out (through) outlooks how weak the economy really is," said Giri Cherukuri, head trader at OakBrook Investments in Lisle, Illinois.
Qualcomm cut its revenue and earnings forecast for the current quarter but investors took heart as it said sales would improve for a strong last quarter of 2012.
EBay shares jumped after it posted stronger-than-expected quarterly revenue and earnings as more consumers shopped on its online marketplaces and used its PayPal payment service.
Of the 20 percent of S&P 500 companies reporting earnings so far, 65 percent of companies have beaten expectations, slightly better than average since 1994, according to Thomson Reuters data.
Reuters contributed to this report.
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