NEW YORK (CNN/Money) - Stocks managed a late session turnaround Thursday, a break from a 5-session slump, amid buying in telecom and software, sectors in which some companies reported decent earnings.

After showing some strength this week, the Nasdaq is likely to close higher on the week. As of Thursday's close, it's up by around 12 points. But the Dow and the S&P 500 aren't sitting as pretty. In order to close higher on the week, the Dow would have to gain around 217 points Friday. The Nasdaq would need to add 13 points.

But with few earnings reports and no economic data expected Friday, it's unclear whether the indexes can manage an up day.

After the close of trade Thursday, No. 1 biotech Amgen (AMGN: Research, Estimates) reported a profit of 34 cents per share, up from the 30 cents it earned a year earlier, but a penny shy of estimates.

Also after the close, two retailers reported. Amazon.com (AMZN: Research, Estimates) earned 19 cents a share, a nickel better than expected and up from 9 cents a year earlier. Starbucks (SBUX: Research, Estimates) earned 20 cents per share, 2 cents better than expected and up from the 15 cents it earned a year earlier. The specialty coffee retailer also raised its fiscal-year 2003 estimates.

But on the downside, JDS Uniphase (JDSU: Research, Estimates) reported a loss after the bell of 13 cents per share in its last quarter, 8 cents worse than what analysts expected. One year earlier, it lost 2 cents.

Defense names Lockheed Martin (LMT: Research, Estimates) and Raytheon (RTN: Research, Estimates) are due to report results Friday morning. No economic reports are expected.

The Nasdaq composite (up 28.79 to 1388.27, Charts) gained around 2.1 percent. The S&P 500 index (up 8.98 to 887.34, Charts) added 1 percent and the Dow Jones industrial average (up 50.74 to 8369.47, Charts) rose about 0.6 percent; the gains once again moved the two indexes into positive territory for the year after they both lost this distinction in Wednesday's selloff.

Nearly 70 members of the Standard & Poor's 500 revealed their results either after the bell Wednesday or by the close of trade Thursday. But the ones that drew the most interest during Thursday's session were Dow component AT&T -- which disappointed in both its last quarter and its outlook for the future -- and the telecom and software issues on the Nasdaq, which mostly topped estimates.

"AT&T's results and outlook is certainly a disappointment," said Peter Cardillo, director of research at Global Partners Securities. "But some of the tech and telecom earnings are outperforming other sectors. That factor, combined with a technical bounce off the low end of this range we're in, is giving the Nasdaq and broader market some momentum."

The latest spate of earnings news at least managed to distract investors from the looming military conflict with Iraq -- worries that have plagued stocks over the past few months.

On Wednesday, the Dow and the S&P 500 erased all of their gains for the year in a broad selloff caused by war worries and ho-hum earnings news. But tech and telecom buying on the Nasdaq gave a lift to the market Thursday, returning the indexes to profitability for the year.

Texas Instruments (TXN: up $1.87 to $16.12, Research, Estimates) shares rallied 11 percent after the communications chip maker logged an operating profit that bested forecasts. TI said it sees first-quarter revenue in line with the fourth quarter and earnings per share of about 6 cents, a few pennies better than current estimates.

Telecom gear maker Lucent Technologies (LU: up $0.11 to $1.92, Research, Estimates) lost 15 cents per share in its fiscal first-quarter, but this was better than the 21 cents analysts thought it would lose. The firm reiterated its current quarter and full-year 2003 forecasts and said it should return to profitability by the end of the fiscal year. Lucent also said the telecom market is nearing stability. Its stock gained 11 percent.

Qualcomm's (QCOM: up $1.24 to $37.93, Research, Estimates) stock gained 3 percent after the wireless technology maker reported fourth-quarter earnings that flew past estimates, thanks to improved demand for its products in Asia. Qualcomm also said current quarter and full-year results will top expectations.

Some telecoms found themselves at the wrong end of the line, however.

Shares of BellSouth (BLS: down $1.73 to $23.55, Research, Estimates) fell 6 percent. The third-largest U.S. local phone service provider posted lower fourth-quarter profits as demand for telephone and data services softened in the stagnant economy. The news took its toll on other Bells, including SBC Communications (SBC: down $1.40 to $25.53, Research, Estimates), a Dow stock that lost 5 percent.

In other technology sectors, shares of business software makers Computer Associates (CA: up $1.50 to $14.90, Research, Estimates), PeopleSoft (PSFT: up $2.08 to $19.55, Research, Estimates) and Siebel Systems (SEBL: up $0.55 to $8.94, Research, Estimates) all rose after the companies reported mixed results that nonetheless topped estimates.

The bounce also helped some of the Dow's technology stocks, including Hewlett-Packard (HPQ: up $0.65 to $19.60, Research, Estimates) and Microsoft (MSFT: up $1.28 to $52.28, Research, Estimates).

"This is a technical bounce," said Peter Green, market analyst at MKM Partners. "It's positive that the Nasdaq has been outperforming on a relative strength basis for the last three sessions, but I think it's a little early to say it's a stampede on the Nasdaq. You've got stocks like Texas Instruments surging on mammoth volume, but then Intel and Motorola aren't doing much."

Stocks like Cisco (CSCO: up $0.63 to $14.59, Research, Estimates), Oracle (ORCL: up $0.84 to $12.46, Research, Estimates) and issues in the computer storage, networking equipment and airlines sector were gaining more from a drop in crude oil prices, MKM's Green said, than any Nasdaq rally. "When there's a drop in crude prices, you tend to see it put into stocks with high multiples."

Things were not quite as rosy for the Dow. Although the blue chip average did manage to recover from its early losses, certain problem stocks continued to weigh.

Shares of AT&T (T: down $4.83 to $20.49, Research, Estimates) plunged 19 percent after the company reported a loss from continuing operations in the fourth quarter early Thursday on results that met reduced expectations. The result was confusing, pressuring shares. Additionally, AT&T said it doesn't yet see a significant turnaround in the overall business services industry and that earnings per share will be between 50 and 55 cents in the first quarter, well below the 69 cents analysts are currently predicting.

Sellers showed a bit more mercy for McDonald's (MCD: down $0.36 to $15.00, Research, Estimates), even after it reported the first quarterly loss in its history. The stock closed down a little more than 2 percent.

McDonald's pledged to hold back spending, including share repurchases, as a way of trying to cut debt and grow earnings. The company's CEO said that earnings growth of between 10 and 15 percent is not unrealistic, but he failed to give a time frame for when that growth could be achieved. (For all of the day's earnings news, click here.)

Market breadth was positive on relatively heavy volume. On the New York Stock Exchange, winners topped losers by nearly 5 to 3 as 1.67 billion shares traded. On the Nasdaq, advancers edged decliners by more than 9 to 7 as 1.51 billion shares changed hands.

Bonds fell. The benchmark 10-year note dropped 3/16 of a point in price, pushing its yield up to 3.93 percent from 3.92 percent late Wednesday. Treasury prices and yields move in opposite directions.

The dollar fell modestly against both the yen and the euro. Gold rallied in New York, rising $4.90 to $364.70 an ounce. Oil was slightly lower in New York, where light crude futures fell 60 cents to $32.25 a barrel.

"Normally, with gold surging and the dollar down, you'd see that hurting stocks, but the market is ignoring that today, which is somewhat positive," Global Partners' Cardillo added.