Updated from 4:14 p.m. EDT

Stocks in New York were all over the map early Thursday, but by the afternoon they had gone positive and stayed that way through the close, recapturing some of the ground they lost during the previous session.

After falling by as much as 90 points earlier, the

Dow Jones Industrial Average

turned around and rose 56.42 points, or 0.42%, to 13,545.84. The

S&P 500

was up 9.35 points, or 0.62%, at 1522.19. The


advanced 17 points, or 0.65%, to 2616.96.

"Volatility certainly reigned today," said Jay Suskind, head of institutional equity trading with Ryan Beck & Co. "There's a level of volatility that will give us this type of action because the market can't find its way. With concern over higher interest rates and the subprime mess, there will be this uncertainty that will plague the market for some time to come."

On Wednesday, the market took a late tumble as Treasury prices fell, driving up yields. The Dow sank 146 points, or 1.07%, to 13,489.42, and the S&P 500 lost 20.86 points, or 1.36%, to 1512.84. The Nasdaq dropped 26.80 points, or 1.02%, to 2599.96.

Lately, government bonds were softer. The 10-year note was down 8/32 in price, yielding 5.16%, while the 30-year bond was losing 18/32, yielding 5.28%.

About 2.96 billion shares changed hands on the

New York Stock Exchange

, with advancers beating decliners by a 6-to-5 margin. Volume on the Nasdaq reached 1.99 billion shares, and winners matched losers.

Energy stocks, which suffered during the prior session, rebounded strongly.


(CVX) - Get Report



(HES) - Get Report


Marathon Oil

(MRO) - Get Report


Occidental Petroleum

(OXY) - Get Report

all finished higher by 2.2% or more.

Meanwhile, several deals were in the works or being struck. Canada's


(BCE) - Get Report

, who has talked with potential partners for several weeks, said it has been discussing the chance of a merger with its fellow communications company


(TU) - Get Report


BCE added $1.12, or 3.1%, to $37.89, while Telus slid $1.83, or 3%, to close at $58.90.

Luxottica Group


is planning to acquire


( OO) in an arrangement worth $29.30 a share, or a little over $2 billion in total. Luxottica jumped 9.1% to $38.02, and Oakley surged 12.8% to $28.45.

Following the prior close,

Dow Jones

( DJ) said its board would take control of negotiations about a possible sale to Rupert Murdoch's

News Corp.

(NWS) - Get Report

. Until now, Dow's controlling shareholders, the Bancroft family, have had the lead role in the matter. Dow Jones was lower by 1.6 % to $59.71, and News Corp. tacked on 0.5% to $23.71.

General Electric

(GE) - Get Report

, which said shortly after the midday mark that it would not pursue an acquisition of Dow Jones, finished higher by a penny at $38.80.

Among the day's research calls, Piper Jaffray downgraded

Home Depot

(HD) - Get Report

to market perform from outperform, and Citigroup cut its rating on


(PRU) - Get Report

to hold from buy. Home Depot closed down 0.2% to $39.95, and Prudential lost 0.8% to $99.51.

On the economic front, the Labor Department said initial jobless claims unexpectedly rose by 10,000 last week to 324,000. Economists had expected claims to come in at 311,000. Elsewhere, the Conference Board said leading economic indicators rose 0.3% in May, slightly above the consensus. The gain helped reverse a 0.5% decline in April.

The Philadelphia

Federal Reserve

said its manufacturing index for June jumped to a reading of 18.0, more than double expectations.

As for commodities, the front-month August crude contract lost 21 cents to $68.65 a barrel. Gasoline was up by a penny at $2.24 a gallon. Precious metals were weaker. Silver futures fell 16 cents to $13.09 an ounce. Gold futures lost $8.60 to $651.40 an ounce

Overseas, stocks climbed in Asia but eased in Europe. Tokyo's Nikkei tacked on 0.2%, and Hong Kong's Hang Seng jumped 1.3%. London's FTSE slipped 1.2%, and Frankfurt's DAX shed 2.1%.