US STOCKS-Wall St rises on corporate profits, economic optimism

                                
 * Dow Chemical profit beats estimates
                                
 * Chrysler headed to bankruptcy
                                
 * Initial jobless claims fall, but continuing claims rise
                                
 * Dow up 1 pct, S&P up 1.2 pct, Nasdaq up 1.9 pct
                                
 * For up-to-the-minute market news click [STXNEWS/US]
 (Updates to midmorning)
                                
 By Leah Schnurr
                                
 NEW YORK, April 30 (Reuters) - U.S. stocks climbed on
Thursday as better-than-expected company profits and a decline
in initial jobless claims stoked optimism that the economic
slump is showing signs of abating.
                                
 The broad S&P 500 index is on track to rack up its best
month since March 2000, and is up nearly 31 percent from the
bear market low in March. The sharp advance was spurred by
optimism over the state of the banking sector and hopes that
the recession is easing.
                                
 The gains came even after a U.S. administration official
said Chrysler LLC will proceed with Chapter 11 bankruptcy
protection as attempts to reach concessions with lenders
faltered. For details, see [ID:nN30510731].
                                
 Among the bright spots, Dow Chemical Co <DOW.N> handily
beat estimates, helped in part by cost reductions, and its
shares jumped 18.4 percent to $16.00.
                                
 "The quarter itself may not have been great, but there was
an improving trend there, suggesting some of those tentative
signs of economic stabilization we've seen in other data may
actually be showing up in corporate results," said Jeff
Kleintop, chief market strategist at LPL Financial in Boston.
                                
 "That bears some good news perhaps for the second half of
this year."
                                
 The Dow Jones industrial average <.DJI> rose 79.32 points,
or 0.97 percent, to 8,265.05. The Standard & Poor's 500 Index
<.SPX> gained 10.86 points, or 1.24 percent, to 884.50. The
Nasdaq Composite Index <.IXIC> climbed 32.42 points, or 1.89
percent, to 1,744.36.
                                
 Data showed the number of workers filing new claims for
unemployment benefits fell last week, but the number of people
staying on benefits rose to a fresh record high, reflecting the
continued impact of the recession on the labor market.
[ID:nN30506091].
                                
 Kellogg Co <K.N> rose 9.3 percent to $43.18 after profit
topped expectations on cost savings and stronger sales of
cereal. [ID:nN30496712].
                                
 Not all of the latest key quarterly results were good. Oil
giant Exxon Mobil Corp <XOM.N> was the Dow's biggest drag, down
2.2 percent at $66.93, after the company's profit missed Wall
Street estimates as the global downturn cut into oil demand.
[ID:nN30357802].
                                
 Consumer staples companies Procter & Gamble Co <PG.N> and
Colgate-Palmolive Co <CL.N> both slid on weak sales as
consumers tightened their belts. [ID:nN30504539].
                                
 Dow component P&G was down 2.8 percent at $49.04, and
Colgate was off 1 percent to $59.14.
                                
 Analysts also noted that expectations for overall corporate
results were ratcheted down sharply ahead of the earning
season.
                                
 On the Nasdaq, shares of First Solar Inc <FSLR.O> surged 24
percent to $179.77 and earnings and revenue surpassed estimates
after the closing bell on Wednesday. [ID:nN29452429].
 (Reporting by Leah Schnurr; editing by Jeffrey Benkoe)