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* 3M Co falls after earnings, outlook
* Initial jobless claims fall in latest week
* Verizon mulls bid for Verizon Wireless - sources
* Indexes up: Dow 0.05 pct, S&P 0.28 pct, Nasdaq 0.57 pct
By Chuck Mikolajczak
NEW YORK, April 25 (Reuters) - U.S. stocks edged higher onThursday, as investors digested a raft of earnings and a drop ininitial jobless claims, though declines in Dow componentsExxonMobil and 3M Co capped the advance.
United Parcel Service Inc, considered an economicbellwether, advanced 1.5 percent to $84.74 after the world'slargest package-delivery company reported a quarterly profitabove analysts' estimates.
Akamai Technologies Inc surged 18 percent to $42.59as the best performer on the S&P 500 after the internet contentdelivery company posted first-quarter earnings above Wall Streetestimates and forecast second-quarter results above analysts'expectations late on Wednesday.
"Investors coming into this earnings season were quitefearful, so even modestly positive news becomes great news andthat is what we've experienced for the last several days," saidLawrence Creatura, portfolio manager at Federated Investors inRochester, New York.
"It's probably a little early in the earnings season to talkabout aggregate results but it's important to recognize thatearnings are growing and so higher prices are deserved."
But declines in ExxonMobil and 3M Co briefly dragged the Dowinto negative territory and curbed gains on the S&P 500.
ExxonMobil Corp dipped 1.4 percent to $88.15. Thelargest U.S. company by market capitalization said its quarterlyprofit edged up, helped by its chemicals business, but oil andgas production fell.
Fellow Dow component 3M Co lost 3.7 percent to$103.86 after the diversified U.S. manufacturer postedfirst-quarter earnings and revenue that missed Wall Streetexpectations and cut its 2013 profit forecast.
Economic data showed initial claims for state unemploymentbenefits in the latest week dropped 16,000 to a seasonallyadjusted 339,000 versus expectations for 351,000.
The Dow Jones industrial average gained 8.02 points,or 0.05 percent, to 14,684.32. The Standard & Poor's 500 Index added 4.48 points, or 0.28 percent, to 1,583.27. TheNasdaq Composite Index rose 18.60 points, or 0.57percent, to 3,288.25.
Cliffs Natural Resources Inc jumped 14 percent to$20.78 after the iron ore and metallurgical coal miner postedearnings late on Wednesday that were much better than analystshad estimated.
Qualcomm Inc lost 5.4 percent to $62.43 after themobile chipmaker forecast earnings below expectations lateWednesday.
Companies expected to post earnings after the close include Amazon.com Inc and Starbucks.
Verizon Communications Inc rose 2.1 percent to $52.87after sources told Reuters it has hired advisers to prepare apossible $100 billion cash and stock bid to take full control ofVerizon Wireless from joint venture partner, Vodafone Group Plc.
Earnings season has been largely positive, with 68.4 percentof S&P 500 companies that have reported results throughWednesday morning beating expectations, according to ThomsonReuters data through Tuesday morning. Since 1994, 63 percenthave surpassed estimates on average, while the beat rate is 67percent for the past four quarters.
Analysts see earnings growth of 3.1 percent this quarter, upfrom expectations of 1.5 percent at the start of the month.
Revenues, however, have been disappointing, with only 40.1percent of 119 reported companies having topped expectations,well short of the 62 percent average since 2002 and the 52percent beat rate for the past four quarters.
