Stocks turn higher

NEW YORK (CNNMoney.com) -- The Nasdaq jumped and the broader market crept higher Wednesday afternoon as investors welcomed falling oil prices and bullish analyst comments on Dow stock Microsoft.

The Dow Jones industrial average (up 24.22 to 12,534.52, Charts) and the broader S&P 500 (up 1.53 to 1,439.30, Charts) index both inched higher 3 hours into the session. The Nasdaq (Charts) composite added 0.42 percent.

Stocks struggled in the early going as investors welcomed the developments in Iran and the oil markets, but held back amid a slew of weaker reports on the economy.

By midday, the tone had turned more positive, with the tech-heavy Nasdaq leading the move higher.

U.S. light crude oil for May delivery fell 49 cents to $64.15 a barrel on the New York Mercantile Exchange after Iran's president pardoned and pledged to release the 15 British sailors and marines being held.

Concerns about the standoff between the two nations had driven up the price of oil over the last week. Iran is the No. 4 oil exporter.

However, prices had been even lower prior to the midmorning release of the weekly energy inventory report, which showed a big drop in gasoline supplies.

Nonetheless, the apparent resolution to the standoff provided some comfort to investors.

Among stock movers, Microsoft (up $0.83 to $28.70, Charts) jumped after Citigroup raised its fiscal third quarter earnings estimates on the software leader, reflecting what it said was the successful launch of Windows Vista and Office 2007, according to Reuters.

Tempering the gains: a batch of economic reports that revived worries about the health of the economy.

Factory orders rose 1 percent in February after falling a revised 5.7 percent in January. Economists surveyed by Briefing.com thought sales would rise 1.9 percent.

The Institute for Supply Management's services sector index fell to 52.4 in March from 54.3 in February. Economists thought it would rise to 54.7, on average.

Employers added 106,000 private sector jobs in March, according to a morning report from payroll services company ADP. The figure was short of expectations and raised concerns ahead of the more closely watched monthly report from the Labor Department, expected Friday, when stock markets are closed.

All stock markets are closed for Good Friday, although bond and commodities markets will see limited trading.

Best Buy (down $0.87 to $48.26, Charts) reported higher quarterly earnings that topped estimates, sending shares higher. However, rival Circuit City (down $0.14 to $18.14, Charts) reported a quarterly loss, versus a profit a year earlier, sending shares lower.

Monster Worldwide, parent of employment site Monster.com, said first-quarter revenue won't meet forecasts because of slower growth in its U.S. online ad sales. Monster (down $6.38 to $42.13, Charts) shares slipped 14 percent.

DaimlerChrysler (down $0.76 to $82.19, Charts)'s CEO confirmed that the company is talking with potential buyers about its money-losing Chrysler unit.

Market breadth was negative. On the New York Stock Exchange, losers topped winners 8 to 7 on volume of 300 million shares. On the Nasdaq, decliners topped advancers 5 to 4 on volume of 440 million shares.

Treasury prices gained, lowering the yield on the 10-year note to 4.63 percent from 4.66 percent late Tuesday. Bond prices and yields move in opposite directions.

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

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