Nasdaq leads early stock run
Tech-fueled average rallies, while the Dow and S&P 500 struggle to rise. JPMorgan Chase's results and jobless claims in focus.
NEW YORK (CNNMoney.com) -- JPMorgan Chase's better-than-expected results and a drop in the number of initial unemployment claims were among the developments boosting stocks Thursday morning.
The Dow Jones industrial average (INDU) gained 34 points, or 0.4% in the early going. The S&P 500 (SPX) index gained 4 points, or 0.6%. The Nasdaq composite (COMP) added 16 points, or 1%.
"A trickle of news from the financial sector has been more encouraging," said Ken Wattret, economist with BNP Paribas in London, referring to not only to JPMorgan, but to Goldman Sachs' unexpectedly profitable report, which came out on Monday.
"There are some signals of stabilization here and there," said Wattret. "But it's still a pretty difficult environment for banks."
Investors have been receiving mixed messages from the market. While the finance firms have reported profits, foreclosures continue to dog the housing market, according to a new report.
Wall Street staged a late-day rally Wednesday to finish the session higher. The Dow and S&P both gained about 1% while the Nasdaq was little changed.
Earnings: JPMorgan Chase (JPM, Fortune 500) announced first-quarter earnings of $2.1 billion, or 40 cents per share, beating analysts' expectations. JPMorgan stock rose 3% in morning trading.
On the tech front, Nokia (NOK) reported that its operating profit plunged 96% in the first quarter in tandem with declining sales for cell phones. However, some analysts and investors expected even worse results and the stock rallied 10%.
Google (GOOG, Fortune 500) is on tap to release its results after U.S. markets close.
Economy: Foreclosure filings surged by 24% in the first quarter, compared to one year ago, to their highest levels on record as banks lifted their moratorium on filings, according to a report.
Foreclosures reached 803,489 in the first quarter, according to RealtyTrac, an online marketer of foreclosed properties.
Key government reports on the housing and job markets were released before the bell.
Housing starts fell to a seasonally adjusted annual rate of 510,000 last month, down nearly 11% from a revised 572,000 in February, according to the Commerce Department. February starts were originally reported at 583,000.
Applications for building permits, an indicator of future construction activity, fell 9% to a seasonally adjusted annual rate of 513,000 last month. Economists were expecting permits to fall to 549,000.
Foreclosure activity skyrocketed in March and the first quarter of 2009 to their highest levels on record as banks lifted moratoria on filings. Total foreclosure filings - which include default papers, auction sale notices and repossessions - reached 803,489 in the first quarter, according to a report released Thursday by RealtyTrac, on online marketer of foreclosed properties.
Initial jobless claims plunged to 610,000 in the week ended April 11, reported the U.S. Department. That's a decline of 53,000 from the prior week, which the government revised to 663,000. Continuing claims continue to rise.
Also on the economic calendar is the Philadelphia Fed index, a regional reading on manufacturing.
Companies: Mall operator General Growth Properties (GGP) filed for bankruptcy after it was unable to refinance its debt. The company is the latest victim of the credit crisis.
AIG (AIG, Fortune 500) is close to selling its auto insurance division to Swiss firm Zurich Financial Services for approximately $1.5 billion, according to published reports.
World markets: Global investors were wary after China said its economic growth slowed to a pace of 6.1% in the first quarter. Stocks in Japan finished narrowly higher. European markets rallied in the afternoon.
Oil and money: The price of oil gained by 82 cents a barrel to $50.07. The dollar rose against the euro and the British pound, but fell versus the yen. 
