Dow Posts Modest Gain, but Nasdaq Slips

As for companies, Citigroup said that UBS (UBS Quote) is set to write down $6.9 billion in assets and will need to raise fresh capital. UBS had said Wednesday that it would not require additional liquidity. Shares climbed 2.5% to $20.32.

Elsewhere among the financials, mortgage insurer Freddie Mac (FRE Quote) said it probably won't be raising capital before it reports second-quarter earnings in mid-August. Freddie also announced that the 30-year fixed mortgage rate fell to 6.35%. Shares slumped 8.9% to $14.50.

In the technology space, The Wall Street Journal reported that Internet company Yahoo! (YHOO Quote) is in talks with Time Warner (TWX Quote) about signing a deal with that company's AOL unit.

On Wednesday, the Journal reported that Microsoft (MSFT Quote) was still interested in finding a way to gain control of Yahoo! after a failed bid earlier this year. Yahoo! shares ticked up 2.3% to $21.35.

Nvidia was one of the primary culprits in keeping the Nasdaq under water. Following the previous close, the semiconductor maker offered a gloomy second-quarter forecast owing to flaws in some of its microchips. Shares lost 31% to $12.49. Dow component and fellow chipmaker Intel (INTC Quote) was trading down, as well.

Turning to the mining companies, Citigroup upgraded Arch Coal (ACI Quote) and Peabody Energy (BTU Quote) to buy from hold. The two names were hammered Wednesday. Arch ended up 2.4% at $63.70, but Peabody closed down slightly at $77.62.

In the pharmaceutical area, Abbott Laboratories (ABT Quote) last night got Food and Drug Administration approval for a drug-eluting stent, sending shares up 1.3%. Also in the sector, Sanofi-Aventis (SNY Quote), GlaxoSmithKline (GSK Quote) and AstraZeneca (AZN Quote) aided a rally.