Indexes Edge Higher Amid Mixed Reports

Stocks closed broadly lower Wednesday but key indexes were higher, in part thanks to some upbeat corporate earnings projections.

General Motors boosted the Dow industrials after brokerage Lehman Bros. raised earnings estimates for the car maker.

The Dow finished up 65.38 points, or 0.6%, to 10,241.02.

The Nasdaq composite struggled for much of the day but was up 9.25 points, or 0.5%, to 1,972.04 at the close.

Still, losers outnumbered winners by nearly 3 to 2 on the New York Stock Exchange and on Nasdaq, in active trading.

But after the beating the market has taken over the last week in anticipation of weaker-than-expected second-quarter earnings, some analysts said profit reports released after trading ended Wednesday may help stop the decline--and perhaps spark a rally.

Shares of Yahoo jumped in after-hours trading after its report, and Microsoft climbed as well after saying sales in the quarter were above expectations.

“People are starving for something to buy,” said William Batcheller, who helps manage the $1-billion Armada Equity Growth Fund in Cleveland.

GM rallied $2.73 to $65.47 in the regular session after Lehman raised its 2001 earnings estimate for the company to $4.05 a share from $3.80.

Also, appliance giant Whirlpool rose $3.60 to $63.36 after it said second-quarter earnings to be reported Tuesday will be at the high end of estimates. Shoemaker Wolverine World Wide surged $2.08 to $17.17 after reporting earnings above expectations.

Still, other companies had downbeat news, including Emerson Electric, which plunged $8.48 to $52.93 after warning that second-quarter earnings will fall 11% because of an “unprecedented” sales slump in electronics and telecommunications products.

Worries over Argentina’s debt troubles hurt some bank stocks, including Citigroup, which fell $1.52 to $47.60.

Among Wednesday’s highlights:

* Many tech shares posted modest gains after early losses. KLA Tencor rose $1.29 to $47.96, Intel added 27 cents to $28.06 and PeopleSoft was up 41 cents to $40.46.

But Comverse Technology tumbled $13.07 to $25.95. The largest maker of telephone-messaging systems reduced its earnings forecast for the rest of its fiscal year, citing delayed orders and smaller purchases by customers.

Also, Openwave dropped $3.90 to $20.24 after analysts said business might slow for the maker of mobile phone software as customers delay orders or buy products for a shorter time frame.

* CSX advanced $1.70 to $37.40 after the owner of the third-largest U.S. railroad reported second-quarter earnings that beat estimates. CSX also cut its quarterly cash dividend 67%, saying the move would increase financial flexibility.

Among rivals, Union Pacific climbed $2.70 to $57.65 and Norfolk Southern gained $1.43 to $21.56.

* Foreign markets were broadly lower. French stocks slid 1.2%, the Japanese market dropped 2.4% and the Mexican market fell 2.2%.

Market Roundup, C8-C9