Wall Street: Tuesday mid-session

By THIS IS MONEY
Updated:

 

STOCKS edged ahead but volume was light as investors awaited guidance from the Federal Reserve on the direction of the economy.

The blue-chip Dow Jones Industrial Average rose 17 points to 9235 by mid-session, and the technology-loaded Nasdaq added 7 points to 1668.

'Overall there's more buying than selling,,' said Cary Nordan, vice president at BB&T Asset Management. 'But you can sense the lack of conviction when the market's turning up, as volume has been light, since it's August.'

The Fed was set to announce later whether it would lower or raise a key short-term interest rate from the current 45-year low. While policymakers were widely expected to leave the rate unchanged, investors were eagerly awaiting their statements on the health of the economy.

Stocks have racheted up and down in recent weeks as investors, having sent the market surging since mid-March, worried that the rally might have come too fast. They now want to see stronger evidence of a solid economic recovery.

Credit card issuer Capital One Financial rallied $2.72, or 5.7%, to $50.81 and ranked among the most active on the New York Stock Exchange. The company released numbers late on Monday showing that loan losses fell in July.

Electricity wholesaler Reliant Resources tumbled 92 cents, or 18.5%, to $4.06. The company swung to a second-quarter loss, hurt by higher interest and energy costs.

Marvel Enterprises rallied $1.46, or 7.8%, to $20.11. The company said second-quarter profit soared, boosted by the licensing of its popular comic book characters like the 'Incredible Hulk' and 'Spider-Man.'

Energy company Dynegy jumped 19 cents, or 6.4%, to $3.16 in active trading. The company has closed a series of refinancing and restructuring deals and will use the proceeds to help cut debt.

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