WALL Street stocks regained their footing after two days of sharp losses, as technology issues snapped back and blue chip shares gained on hopes of a breakthrough in federal budget talks.

The Dow Jones average of 30 industrial stocks was up 32.16 points to 5065.10. Trading was active but below Wednesday's hectic pace of 496.79 million shares, the fifth heaviest day ever on the stock exchange.

Computer related shares, which had led the charge lower on Tuesday and Wednesday, ended mostly higher. The Semi conductor Industry Association reported that its December book to bill ratio, a measure of chip sales, declined in December but was still close to analysts' expectations. Chip stocks rose, pushing up the shares of computer companies.

But Apple fell in Nasdaq trading, after the personal computer maker said Wednesday it will slash prices and report an operating loss for the October December quarter.