Stocks Manage Slight Rally

Laidi expects any ambiguities to become clearer after postmeeting comments. The real intentions of the statement "will depend on the post-meeting interpretations declared by the ministers and central bankers, especially commenting on post-meeting moves."

In the end, Laidi expects the U.S. to lose out and for the dollar to strengthen at least until the summer. "Resumed verbal intervention from the European Central Bank will provide leadership in supporting the dollar against the major currencies. We have already seen this three weeks ago, and we will likely see it again."

Laidi sees the euro trading at $1.2170 by the end of April and the dollar fetching 106 yen.

Movers

Level 3 Communications (LVLT Quote) said it had a third-quarter loss of 30 cents a share, excluding items, which was better than analysts' consensus for a loss of 32 cents a share. However, the company dampened revenue expectations, because AOL is cutting purchases as they reduce dial-up capacity. Level 3 stock lost 70 cents, or 12.5%, to $4.91.

Wal-Mart (WMT Quote) said same-store sales grew by 5.7% in January, ahead of the consensus estimate of 4%; total sales were $18.4 billion. The stock climbed 86 cents, or 1.6%, to $56.25.

Starwood Hotels(HOT Quote) reported fourth-quarter earnings of 42 cents a share, which was 10 cents better than the Wall Street analyst consensus. Revenue increased 1%. The shares soared $2.25, or 6.5%, to $37.15.

And fourth-quarter earnings at PepsiCo(PEP Quote) were 51 cents a share, a penny below analysts' 52 cents-a-share consensus. Sales rose 9.4%. The stock added 90 cents, or 1.9%, to $48.50.

Sprint PCS (PCS Quote) stock rallied 14 cents, or 1.6%, to $8.70, benefiting from two analyst upgrades. Bear Stearns boosted the stock to outperform from peer perform, and Smith Barney Citigroup lifted the shares to buy from hold.

Looking ahead, the government will release its anxiously awaited January employment report at 8:30 a.m. EST Friday. Economists expect nonfarm payrolls to grow by 165,000 after posting a paltry gain of 1,000 in the prior month. In addition, the unemployment rate is expected to hold steady at 5.7%. Job growth has been elusive in the current economic upswing, as productivity gains, excess capacity and cost-cutting temper hiring.

Tomorrow's earnings calendar includes releases from Ericsson(ERICY Quote) and Cigna(CI Quote).