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Stocks Look to Rebound

The three major indices are higher out of the opening gate following a sharp down day in the previous session. Traders have plenty of earnings and new jobless claims data to digest.

Updated from 9:00 a.m. EDT

Wall Street was rising early Thursday as traders digested a fresh set of mixed earnings reports and a better-than-expected weekly jobless claims report following the prior session's big selloff.


Dow Jones Industrial Average

was up 26 points to 12,627, and the

S&P 500

gained 2 points to 1393. The

Nasdaq Composite

tacked on 13 points to 2462.

The new session saw traders looking past a number of fresh negative indicators early on. Crude easily got past another round number, $135 a barrel, before retreating to a 35-cent gain at $133.52.

Still, gold futures were down $6.70 to $921.90 an ounce, and the U.S. dollar took back some of its losses over the past couple of days. The greenback added 0.2% against the euro and strengthened by 0.3% against the yen.

Also, the Labor Department announced a sharp decline in the number of workers applying for unemployment benefits. Jobless claims in the week ended May 17 totaled 365,000, down 9,000 from the prior week and 8,000 lower than expected.

Among companies, Swiss bank


(UBS) - Get UBS Group AG Report

priced a $15.5 billion rights issue 31% below its last closing price on the Zurich exchange, but shares were still picking up 1.3% in early U.S. trading.

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Last time out

, the major averages plummeted after the

Federal Reserve

said it had negatively revised several of its economic forecasts, and crude oil smashed through yet another record. The Dow slid more than 200 points.

Back on the corporate front, wholesale power-generation outfit

NRG Energy

(NRG) - Get NRG Energy, Inc. Report

proposed an unsolicited takeout bid of $11 billion for rival



, which earlier this year dug itself out of bankruptcy. Shares of NRG were off slightly at $42.49 in early trading.


Limited Brands


, which operates the Victoria's Secret and Bath & Body Works retail chains, nearly doubled its fiscal first-quarter profit with help from the sale of a joint venture. Also, adjusted earnings came in ahead of the average Wall Street estimate. Shares gained ground in last night's extended session.

Pet-supplies retailer



also beat consensus estimates for the first fiscal quarter, but it guided under expectations for the current one. Shares were falling in the prior late session.

Other retail chains expected to report quarterly results today include


(GME) - Get GameStop Corp. Class A Report

, which will report before the open, and


(GPS) - Get Gap, Inc. Report

, which reports after the closing bell.

Treasury prices were falling. Both the 10-year note and the 30-year bond were off 11/32 in price to yield 3.85% and 4.56%, respectively.

Markets abroad were mainly in retreat. The Nikkei 225 in Tokyo added 0.4% overnight, but Hong Kong's Hang Seng Index sank 1.6%. In Europe, the FTSE 100 was up a fraction at 6200 as Germany's Xetra Dax and the Paris Cac lost about 0.5% apiece.