First-time unemployment claims fell more than expected last week as the economy continued to absorb job losses. The Dow rose 20 points to 8844 while Nasdaq edge up 2 points to 1580.
On the upside
Discover Financial Services (NYSE: DFS) returned to profitability in the 4th quarter after receiving an $863 million payment from an antitrust settlement from MasterCard (NYSE: MA) and Visa (NYSE: V).Package delivery giant FedEx (NYSE: FDX) posted higher 2nd quarter profits attributed to lower fuel costs and announced plans to cut salaries and expenses due to an uncertain 2009 outlook.
Shares of Coca-Cola Enterprises (NYSE: CCE) rose after the soft drink bottler boosted its 2009 profit forecast.
On the downside
General Motors (NYSE: GM) denied reports that it has reopened merger talks with Chrysler. Both automakers were at risk of going bankrupt without a government bailout.
Computer-chip maker Atheros Communications (Nasdaq: ATHR) posted higher 3rd quarter revenues and earnings, but slashed its 4th quarter guidance.
In the broad market, declining issues outpaced advancers by a narrow margin on both the NYSE and Nasdaq. The Russell 2000 which tracks small cap stocks lost 3 points to 483.