Fed chief Ben Bernanke's comments that the central bank may offer emergency loans to investment banks boosted the markets during the midday with the Dow climbing 35 points to 11,267. Nasdaq gained 13 points to 2256.

On the upside

Shares of Radian Group (NYSE: RDN) continued to climb after announcing yesterday that David Applegate, the president of its mortgage insurance unit, will be replaced by Teresa Bryce.

Desalination device maker Energy Recovery (Nasdaq: ERII) announced that radiation-chemistry pioneer Paul M. Cook will join its board.

Altair Nanotechnologies (Nasdaq: ALTI) announced that its two megawatt battery system successfully completed a demonstration and validation program.

On the downside

June sales for flat panel display maker AU Optronics (Nasdaq: AUO) fell due to the weak economy.

Orient-Express Hotels (NYSE: OEH) entered a strategic partnership with The Related Group to develop and operate hotels and luxury residences in South Beach Miami, Cartagena and Panama City.

Shares of EMC (NYSE: EMC), the majority owner of VMware (NYSE: VMW), tumbled after VMware warned that 2008 revenue will miss expectations and announced the immediate departure of president and chief executive Diane Greene to be replaced by former Microsoft executive Paul Maritz.

In the broad market, declining issues edged out advancers by a margin of nearly 10 to 9 on the NYSE while advancers outpaced decliners by more than 7 to 5 on Nasdaq. The Russell 2000 which tracks small cap stocks gained 6 points to 665.