Wall St rebounds on PepsiCo, energy shares

By Jennifer Coogan

NEW YORK (Reuters) - U.S. stocks turned higher in choppy trading on Thursday helped by solid earnings from PepsiCo Inc and a rise in crude prices that lifted the energy sector.

Wall Street had kicked off the session lower, rattled after technology bellwether Cisco Systems Inc warned of slowing orders that stoked more worry about a global economic slowdown.

PepsiCo Inc led advancers on the S&P 500 with a gain of 4.5 percent to $69.74 after the soft-drink and snack maker posted an operating profit in line with Wall Street's estimates.

Shares of Exxon Mobil Corp were the second biggest gainer on the S&P, up 1 percent to $81.92 as crude futures climbed 58 cents to $87.70 a barrel.

The Dow Jones industrial average was up 22.35 points, or 0.18 percent, at 12,222.45. The Standard & Poor's 500 Index was up 6.69 points, or 0.50 percent, at 1,333.14. The Nasdaq Composite Index was up 7.14 points, or 0.31 percent, at 2,285.89.

January sales reports from retailers were mixed.

J.C. Penney Co Inc said sales fell, but the drop was less than expected and its shares rose 8.4 percent to $47.38 on the NYSE. Wal-Mart Stores Inc, the world's largest retailer, missed expectations, but its shares rose 0.9 percent at $49.25 after initially declining.

"You saw the retailers rally, but they're really just rewarding mediocrity across the board," said Dan McMahon, head of listed trading at CIBC World Markets Inc in New York.