NEW YORK ( TheStreet) -- Stocks closed mixed Thursday as Egyptian President Hosni Mubarak restated that he will not seek re-election but will stay in office, disappointing expectations of Egyptian protesters who were calling for his immediate resignation. The Nasdaq, despite disappointing earnings news in the tech sector, managed to finish higher. The Dow Jones Industrial Average snapped its eight-day winning streak to close lower by 10 points, or 0.1%, to 12,229 . The S&P 500 managed to inch higher by nearly a point, or 0.05%, at 1,322, and the Nasdaq finished ahead by nearly 2 points, or 0.05%, at 2,790. Stocks began on a weak note early Thursday following disappointing guidance the day before from Cisco ( CSCO). The stock finished 14% lower at $18.94 and was the biggest laggard on the Dow. Markets recovered from losses later in the day on reports that Mubarak would announce that he is stepping down, putting an end to the Egyptian crisis. However, the Dow failed to overcome earlier weakness as the tone of Mubarak's address during the final minutes of the market session became clear. According to press reports, crowds erupted in anger as Mubarak said he will remain in office until September. Mubarak said he will delegate powers to the Vice President Omar Suleiman. Investors remain uncertain of how protesters will respond over the next few days. Shares of Market Vectors Egypt ETF ( EGPT) were down 1.5% in after-market trading, after trading higher earlier.Crude oil futures were rising 91 cents or 1% to $87.62 after the speech after cooling off earlier. Tech stocks sold off Thursday. Activision Blizzard ( ATVI) and Akamai Technologies ( AKAM) were both hit following
disappointing guidance. Activision's stock finished 8% lower at $10.75, and Akamai's was off by 15% at $40.75. Consumer stocks were also under pressure, with Dr Pepper Snapple ( DPS) and Molson Coors ( TAP) among the worst performers on the S&P 500. Market breadth was split, with 48% of NYSE stocks finishing higher and an equal number ending in the red.
On the positive side, Sprint Nextel ( S)
reported a loss of 31 cents a share, which was a penny better than analysts had expected. Sales of $8.3 billion also topped Wall Street's revenue target of $8.15 billion. The stock added 5.8% at $4.60. Shares of Whole Foods ( WFMI)jumped 12% to $60.05 after the company reported a 79% spike in first-quarter earnings and raised its year-end outlook. Shares of eBay ( EBAY) surged 8% to $34.49 on its analyst day, the first meeting it has had in over two years. eBay has said it foresees PayPal is expected to grow from $3.4 billion in 2010 to between $6 billion and $7 billion in 2013, and the business will surpass that of the core marketplace in the next three to five years. Shares of Dish ( DISH) climbed 5.9% to $23.49 after Credit Suisse issued a research note discussing AT&T's possible interest in buying the satellite company. Goodyear Tire ( GT), Teradata ( TDC) and Juniper Networks ( JNPR) were other major gainers on the S&P 500. Thursday's economic data was better-than-expected, although markets largely overlooked the releases to concentrate on earnings. Initial weekly jobless claims fell to by 36,000 to 383,000 in the week ended Feb. 5, from 419,000 previously. The level was better than the 410,000 claims that economists had expected, according to Briefing.com.
The Commerce Department said wholesale inventories rose 1% in December, after remaining unchanged in November. The growth surpassed the uptick of 0.7% that economists had been expecting, according to Briefing.com. Also on Thursday, the
Bank of England voted to hold its key interest rate at a record low of 0.5% and made no changes to its asset purchase program. Overseas, the Hong Kong Stock Exchange lost 2% and Japan's Nikkei dipped 0.1%. London's FTSE shed 0.5% while the DAX in Frankfurt gained 0.3%.
The U.S. Treasury Department said the federal budget deficit widened to $49.8 billion in January, from a shortfall of $42.6 billion in January 2010. The deficit was smaller than the $59 billion economists were expecting. The April gold contract, the most actively traded gold future, shed $3 to settle at $1,362.50 an ounce. The dollar strengthened against a basket of currencies with the dollar index up by 0.7%. The benchmark 10-year Treasury fell 8/32, strengthening the yield to 3.702%.
. --Written by Melinda Peer and Shanthi Bharatwaj in New York.