Nasdaq leads early run

NEW YORK (CNNMoney.com) -- The Nasdaq composite led the early advance Thursday as investors welcomed a merger in the grocery sector and news that Cisco and Apple have ended a trademark battle.

The Nasdaq (up 7.18 to 2,525.60, Charts) composite added 0.4 percent in the early going, while the Dow Jones industrial average (up 9.37 to 12,747.78, Charts) and the broader S&P 500 (up 1.68 to 1,459.31, Charts) index saw smaller gains.

Concerns about inflation sent blue chips lower Wednesday, one session after the Dow closed at a record high.

Stocks were a bit more upbeat in the morning Thursday, although gains were slim.

Whole Foods (up $4.28 to $49.98, Charts) said late Wednesday that it will buy rival Wild Oats Markets (up $2.69 to $18.41, Charts) for around $565 million in cash. The deal sent both Whole Foods and Wild Oats stock higher Thursday morning in active Nasdaq trading.

Cisco (up $0.10 to $27.48, Charts) and Apple Computer (up $1.16 to $90.36, Charts) said late Wednesday that they have reached an agreement so that both can use the iPhone name, sending both stocks higher Thursday. (Full story).

Toll Brothers (down $0.07 to $32.79, Charts) reported sharply lower fiscal first quarter profit, reflecting the ongoing collapse of the housing market. The largest U.S. builder of luxury homes also lowered its fiscal 2007 forecast. However, shares inched higher.

In other news, the number of Americans filing new claims for unemployment last week fell 27,000 to 332,000, a smaller than expected decline.

U.S. light crude oil for April delivery fell 4 cents to $60.03 a barrel in electronic trading after gaining two percent in the previous session.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 4.70 percent from 4.68 percent late Tuesday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar gained versus the euro and the yen.

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