Stocks up as Street parses earnings, oil gyrates

Boeing, one of the 30 stocks that comprise the Dow Jones industrial average, reported a 38 percent jump in first-quarter earnings. The airplane manufacturers' results, along with stronger-than-anticipated forecasts at chip makers Broadcom Corp. and Anadigics Inc., appeared to buoy investor sentiment about the first-quarter earnings season.

Investors also reacted positively to Liberty Mutual's plans to acquire another insurance company, Safeco. The $6.12 billion deal which would create the country's fifth-biggest property insurer sent Safeco shares surging $20.73, or 46 percent, to $20.73.

Still, the stock market's movements were somewhat erratic Wednesday, as investors concerned about inflation kept an eye on fluctuating oil prices. Oil initially pulled back but then rebounded again, as the government reported a rise in crude inventories but a drop in gasoline stockpiles. A day earlier, a record high price for oil had helped send shares skidding.

"I think you're just going to get continued volatility," said Kevin Shacknofsky, co-portfolio manager of the Alpine Dynamic Dividend Fund in Purchase, N.Y. He cited investors' concerns not only about rising energy prices, but also the health of the financial sector.

In late afternoon trading, the Dow rose 56.83, or 0.45 percent, to 12,777.06.

Broader stock indicators rose. The Standard & Poor's 500 index rose 4.71, or 0.34 percent, to 1,380.65. The technology-heavy Nasdaq composite index showed a sizable advance, rising 29.61, or 1.25 percent, to 2,406.55.

Light, sweet crude on Wednesday rose 17 cents to $118.24 a barrel on the New York Mercantile Exchange. Gas touched fresh records after an Energy Department report rekindled concerns about fuel supplies as the summer driving season approaches.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.74 percent from 3.69 percent late Tuesday.

The dollar was mixed against other major currencies, while gold prices fell.