Dow Ends Seven-Day Losing Streak

Updated from 4:06 p.m. EDT

Stocks endured more volatile trading Wednesday but the major averages escaped with gains, and the Dow Jones Industrial Average, even though it finished well below its session high, broke a seven-day losing streak.

The Dow closed up 69.37 points, or 0.8%, at 8542.48. The Nasdaq rose 21.99 points, or 1.6%, to 1397.25, and the S&P 500 was up 4.99 points, or 0.6%, to 906.04. The Dow's gain was as much as 250 points earlier, while the Nasdaq had been up as much as 50.

Stocks started the day stronger thanks to solid earnings from several industrial companies and a bullish interpretation of Intel's (INTC - Cramer's Take - Stockpickr) quarterly report. But the rally fizzled after the midpoint of the session and stocks turned lower. Blue-chips and tech stocks then settled for a choppy, back-and-forth afternoon before ending higher.

The stock market has seen dramatic swings in each of this week's three sessions. On Tuesday, the Dow closed down 166 points, or 1.9%, to 8473, after having been lower by more than 230 points early in the session. The Nasdaq Composite, which had been up for most of the afternoon, ended off 7 points, or 0.5%, to 1375, and the S&P dropped 17 points, or 1.9%, to a touch below 901.

In Washington, Federal Reserve Chairman Alan Greenspan was testifying before Congress for a second day. The Fed chief's upbeat comments about the economy on Tuesday contributed to a midday rally, but his words failed to keep the averages higher at the close. On his second day of testimony, Greenspan said he expects a number of financial restatements from corporate America, but he said he wasn't "terribly concerned" about the impact of the revisions.

Chip heavyweight Intel posted a slight earnings miss and set plans to cut 4,000 jobs, or 5% of its total workforce, primarily through attrition and voluntary separation packages. The technology bellwether and Dow component said that third-quarter revenue would be flat to slightly higher and that it has yet to see any momentum that would indicate a recovery. The shares rose 6% to $19.44.

Another Dow component, Citigroup (C - Cramer's Take - Stockpickr), said second-quarter earnings rose thanks to strong consumer lending growth and solid bond underwriting. The financial services company posted a profit, including one-time items, of $4.08 billion, or 78 cents a share, compared with $3.54 billion, or 69 cents a share, last year. Citigroup climbed 2% to $36.93.

Solid numbers from Coca-Cola (KO - Cramer's Take - Stockpickr), the world's No. 1 soft drink maker, also contributed to a positive tone. The company posted second-quarter earnings of $1.29 billion, or 52 cents a share, compared with $1.12 billion, or 45 cents a share, a year earlier. Revenue for the quarter rose to $5.37 billion from $4.65 billion. The results were in line with analysts' expectations. Coke traded down 0.7% to $50.

Automaker Ford (F - Cramer's Take - Stockpickr) reported a second-quarter profit, its first in a year, due to successful cost-cutting efforts and strong vehicle production in North America. Shares crept up 2 cents to $12.52.

Meanwhile, computer maker Apple Computer (AAPL - Cramer's Take - Stockpickr) said after the close Tuesday that quarterly profits dropped nearly 50%. The company also lowered guidance for the current quarter as business was hit hard by weak market conditions and stiff competition. Apple's shares fell 12% to $15.63.

Motorola (MOT - Cramer's Take - Stockpickr), a maker of various electronics including semiconductors and mobile handsets, reported its biggest quarterly loss ever. The company lost $2.3 billion, or $1.02 a share, in the second quarter, compared with a loss of $759 million, or 35 cents a share, in the same period a year ago.

Excluding a $3.4 billion pretax charge, Motorola earned $48 million, or 2 cents a share, beating analysts' forecasts of a loss of 4 cents. The stock rose 4% to $15.15.

One of the biggest losers was Capital One Financial (COF - Cramer's Take - Stockpickr), which fell 40% to $30.48 despite boasting strong earnings for the second quarter. The company entered a memorandum of understanding with federal regulators that dictates various precautions the subprime lender must take with respect to capital and loan reserves.

Fellow credit card issuer Metris (MXT - Cramer's Take - Stockpickr) plummeted 37% to $3.85 after reporting a steeper-than-expected loss due to an increased number of customer bankruptcies and defaulted loans.

On the economic front, the Commerce Department said housing starts for June fell 3.6% to 1.672 million from 1.735 million in May, slightly worse than economists' expectations. Building permits rose 1.4% to 1.700 million from 1.676 million the previous month, ahead of the consensus estimate.

U.S. Treasury issues were essentially flat around 4 p.m. EDT. The 10-year note was unchanged at 101 14/32, yielding 4.685%. The 30-year bond was up 3/32 to 99 1/32, yielding 5.442%.

Overseas markets were mostly higher. London's FTSE 100 rallied up 4.2% to 4191, and Germany's Xetra DAX gained 2.9% to 4093. Japan's Nikkei 225 finished up 0.4% at 10,296, while Hong Kong's Hang Seng fell 0.8% to 10,335.