Investors mulled over the sharp increase in home foreclosures while the Federal Reserve held an auction of $28 billion in credit to commercial banks. The Dow climbed 33 points to 13,265 while Nasdaq rose 10 points to 2606.
On the upside
Morgan Stanley (NYSE: MS) posted a $9.4 billion writedown which was larger than expected while taking a $5 billion cash infusion from China Investment Corporation, a Chinese-government controlled investment vehicle.
Chemtura (NYSE: CEM), which makes chemical products for crop protection and pool maintenance, planned to review strategic options for the firm.
Edge Petroleum (Nasdaq: EPEX) hired an investment banker to explore strategic options, including the sale of onshore basin operator.
On the downside
Hovnanian Enterprises (NYSE: HOV) reported another loss amid the difficult homebuilding environment.
Palm (Nasdaq: PALM) posted a 2nd quarter loss citing competition, product delays and higher costs. An analyst promptly downgraded the smartphone maker.
Sallie Mae (NYSE: SLM) lowered its 2008 profit forecast which would lower its chances in getting a $900 million breakup fee from a failed acquisition of the student loan originator.
In the broad market, advancing issues outpaced decliners by a margin of 5 to 4 on the NYSE and by a margin of 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks rose a fraction to 754.