MARKET SNAPSHOT: U.S. Stocks Rise; Time Warner Cable Surges

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks reversed earlier losses and rose Thursday as upbeat earnings and deal news outweighed weaker-than-expected retail sales in January and a surprise uptick in weekly jobless claims.

Federal Reserve Chairwoman Janet Yellen's scheduled appearance before the Senate Banking Committee on Thursday was postponed due to a snowstorm.

The S&P 500 (SPX) rose 9.3 points, or 0.5% to 1,828.55, with all 10 main sectors in positive territory. The Dow Jones Industrial Average (DJI) added 56 points, or 0.4%, to 16,020.28. The Nasdaq Composite (RIXF) rose 33 points, or 0.8%, to 4,235.15. Follow our stock market live blog.

"Initial reaction to weak retail sales and jobless claims is being replaced with fundamentals. Some of today's earnings and deal news are providing support," said Chris Gaffney, senior market strategist at EverBank. "The economic data were certainly disappointing, but trends do not indicate a slide to recession. Besides, Yellen has reassured investors that the Fed will stay accommodative and there will be no tightening this year."

Sales at U.S. retailers fell sharply in January and December turned out to be worse than initially reported, offering more evidence that the economy may have softened toward the end of the year.

Initial jobless claims rose by 8,000 to 339,000, the Labor Department reported Thursday. Economists polled by MarketWatch expected claims to fall slightly to 330,000. The four-week moving average was 336,750, an increase of 3,500.

Still investors focused on deal news and a mixed bag of earnings.

Time Warner Cable (TWC) climbed 7.1% on news that Comcast (CMCSA) will buy TWC for $45.2 billion in a deal that would combine the two biggest U.S. cable operators. Comcast shares fell 3.9%. Shares of Charter Communications Inc. (CCMMV) were off 6.2%; the rival cable operator had waged a monthslong battle to buy Comcast.

Shares in Goodyear Tire & Rubber Co. (GT) rallied 9.7% after the company reported a larger fourth-quarter profit and beating estimates.

Cisco Systems Inc. (CSCO) fell 3.5% after the networking-equipment company late Wednesday said its fiscal second-quarter profit fell. Read: Cisco CFO: 'There's been a slowdown, and it's very abrupt'

Also late Wednesday, Whole Foods Market Inc. (WFM) said its fiscal first-quarter earnings rose, but the high-end supermarket chain lowered its fiscal 2014 earnings-per-share outlook, sending the shares down 8%.

Shares of PepsiCo Inc. (PEP) fell 2.2% even as the company topped forecasts for its core earnings. The company also said it would boost its annualized dividend by 15% and it planned to increase share buybacks in 2014 to around $5 billion.

American International Group Inc. (AIG) and Kraft Foods (KRFT) are due to report their quarterly results after the market close.

In other financial markets, the mood was mostly downbeat. The dollar declined, oil prices were lower and most metals prices dropped. European stock markets traded lower and Asian bourses closed in negative territory.

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