Despite falling sales of new homes, the markets traded higher during the midday as investors await the Federal Reserve's rate decision. The Dow climbed 73 points to 11,880 while Nasdaq leaped 40 points to 2408.
On the upside
Dean Foods (NYSE: DF) raised its guidance for the second quarter as production costs declined.
Citigroup analyst Greg Ketron initiated coverage of Zions Bancorp (Nasdaq: ZION) with a Buy rating saying that the bank will be able to maintain its capital levels without diluting shareholders.
On the downsideLCA-Vision (Nasdaq: LCAV) warned that the volume of procedures in the second quarter will most likely drop by 40% as regulators seek to clarify risks associated with LASIK.
Rockwell Automation (NYSE: ROK) blamed disappointing growth for warning that the company will fall short of estimates for the third quarter as well as fiscal 2008.
Goldman Sachs downgraded Boeing (NYSE: BA) due to a decline in orders.
In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks climbed 10 points to 718.