Trading was choppy, as investors struggled to decide whether to buy stocks despite concerns about a war with Iraq. Negative profit outlooks in recent days added to the caution.

"Texas Instruments is helping technology across the board," said Alfred E. Goldman, chief market strategist at A.G. Edwards & Sons Inc. "A willingness to buy this group is evidence that people are starting to think maybe the economy will recover this year."

The Dow Jones industrial average rose 50.74, or 0.6 percent, at 8,369.47, having dropped nearly 501 points in the previous five sessions. Earlier in the day, blue-chip stocks fell as much as 62 points.

The broader market also finished higher. The Nasdaq composite index climbed 28.79, or 2.1 percent, to 1,388.27. The Standard & Poor's 500 index gained 8.98, or 1 percent, to 887.34.

Texas Instruments gained $1.87 to $16.12 after the semiconductor maker's fourth-quarter results beat analysts' expectations. It also gave a first-quarter forecast that exceeds Wall Street's estimate.

Qualcomm climbed $1.24 to $37.93 after the telecommunications company reported quarterly earnings that beat Wall Street's estimates, citing higher demand for its products.

Two mixed economic reports released today added to the lackluster mood.

The Labor Department reported that new claims for unemployment benefits rose by 18,000 last week, signaling a continuing weak economy. Private economists had predicted an increase.

And the New York-based Conference Board said the Index of Leading Economic Indicators increased 0.1 percent in December to 111.3. The index rose 0.5 percent in November. Analysts were expecting the index to be flat.

"The index continues to show that the economy is growing modestly," said Edgar Peters, chief investment officer at PanAgora Asset Management. "However, until there are clear signs of earnings growth, the markets can only take cold comfort in these numbers."

Analysts say investors have been hesitant to commit to stocks given weak corporate outlooks and growing tensions with Iraq. That has led to selling that wiped out Wall Street's New Year's rally.

"The number one concern is Iraq," Goldman said. "The minor players are earnings, and also more important, because those (earnings) are ancient history, is the fact that corporate CEOs are generally speaking rather cautiously about the outlook."

PeopleSoft gained $2.08 to $19.55 after the software company reported fourth-quarter profit that beat Wall Street's expectations.

UnitedHealth Group rose $2.04 to $84.79 after the insurer reported fourth-quarter income that beat Wall Street's estimates.