LONDON (ShareCast) - Equity prices advance in more sedate fashion today after yesterday’s exuberant rise. Sentiment was helped by an unexpected fall in first-time jobless claims, though US home sales data confirmed that the US housing market is still in a bad way.

Initial jobless claims in the week to 19 January dipped to 301,000 from 302,000 in the preceding week. The four-week moving average slid to a three-month low of 314,750 compared with 328,750 in the preceding week.

Sales of existing homes in the US were the lowest on record in 2007. The National Association of Realtors (NAR) reported that existing home sales fell 2.2% in December to an annualised rate of 4.89m, compared to analysts' expectations of 4.95m. For the whole of 2007, sales were down 12.8% from 2006 levels to 5.65m units.

The median price of homes sold fell for the first time since records began in 1998, the NAR said, as it dipped 1.4% to $218,900.

The Dow-Jones 30 is up 85 at 12,356 while the S&P 500 is 10 points higher at 1,349. The tech-heavy NASDAQ Composite is outperforming both, up 34 at 2,350.

Computer storage chip maker LSI leads the blue-chips higher after it indicated first quarter earnings would be almost twice as high as market expectations.

Other tech stocks to do well include Molex, Symantec, Teradyne and Xerox.

Global electronics company Molex surges ahead after further consideration of yesterday’s second-quarter results in which revenues came in higher than expected, thanks to currency translation gains.

Computer utilities firm Symantec is on the up after indicating it expects 2008 earnings to equal or exceed $1.24 a share. Consensus forecasts for Symantec’s 2008 earnings had been in the region of $1.17 a share.

Symantec’s rival, McAfee, also makes ground after being upgraded by Bear Stearns to “out perform” from “peer perform”.

Office equipment company Xerox’s fourth-quarter earnings rose 79% and came in ahead of expectations. The company has benefited from the growing demand for colour laser printers and document management services.

Chip-testing equipment manufacturer Teradyne pleased the market with fourth quarter earnings per share from continuing operations of 9 cents, one penny higher than analysts had expected.

Media company McGraw-Hill, owner of the Standard & Poor’s credit rating agency, climbs higher despite announcing its first fall in profits in seven quarters. The company intends to reduce headcount as the demand for debt ratings diminishes.

The Ford Motor Company held steady after its fourth quarter loss fell to $2.75 billion, or $1.30 a share, from $5.63 billion, or $2.98, a year earlier, as its plant closure programme reduced costs.

On the downside, eBay gives back yesterday’s gains as analysts get to grips with yesterday’s results. Net income in the final three months of 2007 rose to $530.9m, or 39 cents a share, from $346.5m (25 cents) in the corresponding period of 2006, but the company warned that sales in 2008 are likely to be below current market expectations.

Bond insurers Ambac Financial and MBIA also surrender large chunks of yesterday’s gains which were prompted by reports of a rescue package for the bond insurance sector.

Pennsylvania's second-largest bank, Sovereign Bancorp, is marked lower after reporting increased fourth quarter losses.

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