The markets opened higher as investors mulled over corporate earnings and acquisition news. The Dow rose 21 points to 12,919 while Nasdaq added 5 points to 2502.

On the upside

Online news provider CNet (Nasdaq: CNET) received a $1.8 billion cash offer from media giant CBS (NYSE: CBS).

Stanley (NYSE: SXE) posted earnings that met targets while raising its outlook for the year. The company provides information technology services to the federal government.

Shares of China Architectural Engineering (AMEX: RCH) rallied for a second day in a row after the company posted sharply higher sales and earnings that tripled.

On the downside

Profits dropped in half at department store retailer J.C. Penney (NYSE: JCP) as consumers cut back in spending.

Private equity and real estate company Blackstone Group (NYSE: BX) posted a 1st quarter loss with the company lowering the value of its investments.

China Digital TV Holding (NYSE: STV) reported higher revenues and earnings, but investors sold the stock on the news. The company provides smart cards for TV set-top boxes and licenses their designs.

In the broad market, declining issues outpaced advancers by a narrow margin on the NYSE but were edged out by a margin of 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks lost a point to 735.