Last Updated: January 26th, 2009: 4:40 PM ET---After a day of seesawing from positive territory to negative and back again, the major US equity indices managed to hold onto meager gains as investors weighed the mornings results with mixed economic data. Several news breaks affected trading, from early enthusiasm triggered by major M&A activity on top of a positive existing home sales reading, to late pessimism driven by extremely disappointing results from Caterpillar and job cuts from a number of major corporations. The Dow closed 0.5% higher to 8,116, with Caterpillar (NYSE:CAT) its biggest loser after taking a nose dive post quarterly results and outlook. Meanwhile, the S&P 500 rose 0.6% to 837 and the Nasdaq fared the best, rising 0.8% to 1,489. Dow component McDonald's (NYSE:MCD) reported its fourth-quarter net income fell 23% mostly due to a tax benefit a year ago. The company earned $985.3 million, or 87 cents per share, down from $1.27 billion, or $1.06 per share during the year-ago period when it had the previously mentioned 33-cent tax benefit. Excluding that one-time item, however, the company earned 73 cent per share during that year-ago period. Analysts, on average, were expecting a profit of 83 cents per share. The world's largest construction equipment maker and another Dow component Caterpillar (NYSE:CAT) reported its fourth quarter net income fell to $661 million, or $1.08 per share, down from $975 million, or $1.50 a year earlier. Analysts, on average, were projecting a profit of $1.30 per share. In addition, the Illinois-based company provided guidance that came in well below estimates, projecting its '09 profit to fall to $2.50 per share on estimates of $4.22 per share. Caterpillar (NYSE:CAT) also announced plans to cut 20,000 jobs. Caterpillar (NYSE:CAT) wasn't the only company to announce job reductions as Sprint Nextel Corp (NYSE:S) and Home Depot (NYSE:HD) joined in the cost cutting efforts, slashing 8,000 and 7,000 positions, respectively. Home Depot (NYSE:HD) added that it plans to shutdown four dozen stores in an effort to cope with the lack of demand. Sprint Nextel (NYSE:S) said its job cuts may reduce annual costs by up to $1.2 billion. General Motors (NYSE:GM) also announced layoffs of 2,000 workers at plans in Michigan and Ohio in addition to halting production at nine plants over the next six months. After getting the Dutch government to absorb more than 80% of its losses, ING (NYSE:ING) said it could cut 7,000 jobs. In economic news, the New-York based Conference Board reported its monthly reading on leading economic indicators for December had fallen 0.3%, in-line with economists' expectations. Another report on existing home sales was also released this morning showing a 6.5% rise to an annual rate of 4.74 million units. The Dow Jones Industrial Average closed up 38 points to 8,116, the S&P 500 closed 5 points higher to 837 and the Nasdaq Composite Index closed up 12 points to 1,489.

Contact Chip Brian

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at www.TradeTheTrend.com/signup.html