By Chris Dieterich and Tomi Kilgore 

Most stocks erased early declines and turned higher Thursday after upbeat manufacturing data, though weak earnings from a handful of blue-chip stocks pressured the Dow Jones Industrial Average.

The Dow slipped 12 points, or 0.1%, to 16411 in midmorning trading.

The S&P 500 added one point, or 0.1%, to 1862 and the Nasdaq Composite Index rose 15 points, or 0.4%, to 4100.

Stocks have bounced back in recent days after a selloff in technology and biotechnology stocks helped drag the Nasdaq Composite down 8.2% through Friday from March 5, when it closed at a 14-year high. The Dow finished last week at a two-month low.

Buyers have stepped into the market this week to stabilize the hardest hit sectors. Major benchmarks have risen for three days in a row.

"The market had pulled back, but it wasn't frenzied selling," said Dan McMahon, director of equity trading at brokerage firm Raymond James.

Still, some long-term investors say they're having a hard time finding stocks that are attractively priced. Despite the recent volatility, the S&P 500 closed Wednesday 1.5% below its April 2 record high of 1890.90.

Mark Travis, president of Intrepid Capital Funds, which oversees $1.5 billion in Jacksonville Beach, Fla., said his firm is sitting on a pile of cash nearly on par with levels reached in 2008. "Prices have been bid up for very stable, in-demand, cash-generating businesses," Mr. Travis said. "We're having a hard time [finding stocks to buy] on a valuation basis," he said.

Corporate earnings were in focus, with a raft of companies posting their quarterly results.

Google fell 3.3% after reporting late Wednesday earnings that missed analyst estimates, as the amount advertisers pay per click continued to decline.

IBM slumped 4% after the technology giant's first-quarter earnings matched estimates but revenue declined more than expected on continued declines in hardware sales.

UnitedHealth Group tumbled 3% after the insurer's first-quarter earnings fell 7.8%, hurt by government cuts to Medicare Advantage programs and new taxes resulting from the Affordable Care Act.

The tone was upbeat for investment banks. Goldman Sachs gained 0.5% after the investment bank's first-quarter earnings and revenue declined from year-ago levels, but exceeded analyst forecasts.

Morgan Stanley rallied 3.4% after exceeding earnings and revenue forecasts, helped by strength in its trading business.

On the economic front, initial claims for jobless benefits in the latest week increased by 2,000 to 304,000, versus expectations of a rise to 315,000. The previous week's total was revised up slightly from 300,000, the lowest level seen since 2007, to 302,000.

The Philadelphia Federal Reserve's index of manufacturing activity for April jumped to the highest reading since September, to 16.6, from 9.0 in March.

General Electric rose 1.5% as first-quarter operating earnings fell, but topped analyst estimates amid strength in its industrial business.

DuPont slipped 0.7% after missing earnings and revenue forecasts.

American Express slipped 2% after beating earnings estimates but missing on revenue.

BlackRock declined 2.3% even after its earnings handily topped Wall Street views, as revenue jumped and investors poured money into its mutual funds.

The U.S. stock market is closed Friday for Good Friday.

The yield on the 10-year Treasury note ticked up to 2.652% from 2.637% late Wednesday.

Gold futures eased 0.3% to $1299.10 a troy ounce, while crude-oil futures added 0.6% to $104.41 a barrel. The dollar lost ground against the euro and the yen.

European markets advanced, with the Stoxx Europe 600 gaining 0.3%.

Asian markets were mixed. Japan's Nikkei Stock Average was little changed, pausing after a 3% run-up in the previous session, while China's Shanghai Composite gave up 0.3%.

Write to Tomi Kilgore at tomi.kilgore@wsj.com

UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Mar 2024 to Mar 2024 Click Here for more UnitedHealth Charts.
UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more UnitedHealth Charts.