NEW YORK (CNN/Money) - Stocks closed on an up note Thursday, also ending a shortened holiday week higher, as investors selectively cheered the positive earnings and economic data amid a mixed bag of reports.

"Earnings seem to be flat to a penny better, and everyone was prepared for the worst," said David Briggs, head of equity trading at Federated Investors. "There don't seem to be a lot of sellers in the market, and it seems like the tide might be starting to turn. The market is fairly valued...it gives the opportunity for the economy and earnings to move higher here."

The Dow Jones industrial average (up 80.04 to 8337.65, Charts) rose about 1 percent, while the S&P 500 index (up 13.67 to 893.58, Charts) clocked a 1.6 percent rise. Meanwhile the Nasdaq composite (up 30.78 to 1425.50, Charts) jumped a hefty 2.2 percent, closing above the 1,400 mark for the first time in about a month. Thursday's close was the highest for the Nasdaq since Jan. 15.

All three indexes closed out the short week higher. U.S. markets will be closed tomorrow for Good Friday. The Nasdaq and S&P each closed on the plus side for the year thus far, while the Dow ended just about 4 points shy of breakeven since the start of 2003.

Investors cheered better-than-expected results from mobile phone maker Nokia on Thursday, but weren't so pleased with mixed news from Honeywell, Sun Microsystems and Apple Computer. They also mulled mixed reports on regional manufacturing activity in the Philadelphia area and weekly jobless claims.

Additionally, Thursday marked a double expiration day for options, which traders said was an underlying trigger for buying, most noticeably lifting financial and tech issues late in the session. Expiration of options typically takes place on Friday, but was moved to Thursday as a result of the shortened week.

Next week marks the second of the two busiest weeks for reporting first-quarter earnings -- and investors will hear from a plethora of companies. Among those scheduled to release profit results next week are AOL Time Warner (AOL: up $0.12 to $12.60, Research, Estimates), parent company of CNN/Money, Boeing (BA: up $0.01 to $26.65, Research, Estimates), 3M (MMM: up $0.98 to $129.98, Research, Estimates), Merck (MRK: down $0.22 to $55.89, Research, Estimates), eBay (EBAY: up $1.79 to $90.20, Research, Estimates), AT&T (T: up $0.57 to $14.23, Research, Estimates), Amazon (AMZN: up $0.61 to $24.99, Research, Estimates), American Express (AXP: up $0.73 to $37.08, Research, Estimates) and SBC Communications (SBC: up $0.31 to $20.60, Research, Estimates).

In addition, several economic reports are on the docket for next week. Investors will have to consider the latest readings on leading indicators, durable goods orders, gross domestic product, home sales and a revised reading from the University of Michigan on consumer sentiment.

After the closing bell Thursday, computer maker Gateway (GTW: up $0.03 to $2.42, Research, Estimates) posted a loss of 38 cents per share, excluding a one-time restructuring charge, according to a Reuters report. The loss was narrower than the 40-cent loss expected by analysts, on average, and a penny better than the 39-cent loss that the company posted for the same quarter last year.

Traders were slightly encouraged by a report on regional manufacturing activity from the Federal Reserve Bank of Philadelphia, released around midday. The Philly Fed said its April index of factory business conditions fell to minus 8.8 from minus 8.0 in March, the second month of shrinking output. While it came in below the minus 4.9 reading forecast by economists, according to Reuters, many traders had feared an even deeper drop.

But disappointing news about the economy tapped into investor uncertainty earlier in the day, and helped to mute gains. The Labor Department said the number of Americans filing new claims for unemployment benefits rose to 442,000 in the week ended April 12 from a revised 412,000 the prior week. Economists, on average, expected 411,000 new claims, according to a Reuters poll. A number above 400,000 signals economic weakness. The last time weekly jobless claims were below 400,000 was in the week of Feb. 8.

"We had some positive earnings reports, but I think the fact that we had jobless claims that were above and beyond what was expected derailed some enthusiasm," said Peter Cardillo, director of research at Global Partners Securities. "

Since the war in Iraq began to wrap up victoriously for the United States last week, investors have shifted their focus to corporate earnings and the economy at home. Thursday marked the final day of the first of the two biggest weeks for first-quarter earnings results.

On the earnings front, Finland's Nokia (NOK: up $1.00 to $16.18, Research, Estimates) posted better-than-expected earnings for its first quarter on sales that fell in line with expectations. Analysts said that the company's weak forecast for the second quarter was not as bad as originally feared. Shares of Nokia rose 6.3 percent.

Communications chip maker Broadcom (BRCM: up $2.55 to $16.60, Research, Estimates) rallied 18.2 percent, after the company reported earnings of 6 cents per share for the last quarter late Wednesday, beating analyst estimates by 4 cents a share. Legg Mason upgraded its rating on the company to "buy" from "hold" following the stronger-than-expected earnings. The report helped lift the chip sector, with the Philadelphia Semiconductor Index rising more than 4 percent.

Meanwhile, shares of aerospace components maker Honeywell International (HON: up $0.18 to $22.56, Research, Estimates), a Dow 30 member, also logged gains just shy of 1 percent after the company posted a quarterly profit of 32 cents a share, down from the 45 cents it earned a year earlier and a penny shy of estimates.

But not all issues rose on their results Thursday. Dow component United Technologies (UTX: down $2.27 to $60.00, Research, Estimates), a maker of jet engines and elevators, reported earnings of $1 a share, up from 92 cents a year earlier and better than analysts' expected 97 cents, according to First Call. Its shares fell 3.7 percent.

Server maker Sun Microsystems' (SUNW: down $0.08 to $3.24, Research, Estimates) shares lost 2.4 percent and Apple Computer's (AAPL: down $0.12 to $13.12, Research, Estimates) shares fell nearly 1 percent after each posted mixed quarterly results late Wednesday.

Market breadth was positive. On the New York Stock Exchange, advancing stocks beat out declining issues 3 to 1 as 1.4 billion shares changed hands. On the Nasdaq, winners overtook losers 2 to 1 as 1.6 billion shares traded.

European markets ended the day mixed, while Asian-Pacific stocks closed mostly lower Thursday.

Treasury prices turned lower on the shift in equities, with the 10-year note slipping 18/32 of a point in price to yield 4.01 percent. The dollar was little changed against the yen and the euro.

Light crude oil futures for June delivery gained $1.01 to $28.54 a barrel in New York. OPEC set an emergency meeting for next week -- and traders expect the cartel to tighten the market with export cuts. Gold prices for June delivery also rose $1.30 an ounce to $327.60.