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* Claims data points to recovery in U.S. job market
* Verizon rises on Reuters report of possible wireless bid
* 3M Co shares fall after earnings, outlook
* Dow up 0.5 pct, S&P 500 up 0.7 pct, Nasdaq up 0.9 pct
By Caroline Valetkevitch
NEW YORK, April 25 (Reuters) - U.S. stocks rose on Thursday,buoyed by gains in shares of materials companies, including ironore producer Cliffs Natural Resources Inc, and a drop inweekly jobless claims.
Cliffs' stock jumped 18.6 percent to $21.61 after it postedearnings late on Wednesday that were much better than analystshad estimated. The S&P 500 materials index was up 1.7 percent, leading the S&P 500 higher.
Telecommunications companies' shares also rose following arally in Verizon Communications Inc. The stock rose 2.5percent to $53.09 after sources told Reuters it has hiredadvisers to prepare a possible $100 billion cash-and-stock bidto take full control of Verizon Wireless from joint venturepartner, Vodafone Group Plc.
Investors have closely watched earnings to see if they wouldbe enough to extend the market's advance that began at the startof the year, especially since recent economic data has suggested slowing growth in March and early April. Worries about globalweakness have also hung over the market.
The majority of S&P 500 companies - 67.7 percent so far -are beating earnings expectations, while just 41.4 percent aresurpassing revenue estimates. Though that fits with the usualpattern for earnings season, earnings surprises still tend tolift stocks.
"Companies have gotten very good at controllingexpectations. This has been a pattern of crunching down ofestimates prior to earnings being released, and when earningscome out, they beat the number," said Stephen Massocca, managingdirector at Wedbush Equity Management LLC in San Francisco.
"Every earnings season, the bar is somewhere where they canget over it."
The Dow Jones industrial average was up 71.92 points,or 0.49 percent, at 14,748.22. The Standard & Poor's 500 Index was up 11.38 points, or 0.72 percent, at 1,590.17. TheNasdaq Composite Index was up 27.72 points, or 0.85percent, at 3,297.37.
Thursday's U.S. data gave a less worrisome view of theeconomy. Initial claims for state unemployment benefits in thelatest week dropped a surprising 16,000 to a seasonally adjusted339,000 compared with expectations for 351,000.
The biggest percentage gainer in both the S&P 500 and theNasdaq was Akamai Technologies Inc, whose shares surged19.4 percent to $43.09 after the Internet content deliverycompany posted first-quarter earnings above Wall Street'sestimates late on Wednesday and also forecast second-quarterresults above analysts' expectations.
United Parcel Service Inc, considered an economicbellwether, advanced 2.4 percent to $85.51 after the world'slargest package-delivery company reported a quarterly profitabove analysts' estimates.
But Exxon Mobil Corp and 3M Co bucked the trend as theirshares fell.
Exxon slid 1 percent to $88.54. Exxon, which is thelargest U.S. company by market capitalization, said itsquarterly profit edged up, helped by its chemicals business, butoil and gas production fell.
Fellow Dow component 3M Co lost 2.7 percent to$104.94 after the diversified U.S. manufacturer postedfirst-quarter earnings and revenue that missed Wall Street'sexpectations and cut its 2013 profit forecast.
