Dow Edges Ahead, but Nasdaq Eases

As oil climbed, the dollar was getting dominated by the euro, yen and pound, and Treasury prices were ticking lower. The 10-year note was down 7/32 in price to yield 3.83%, and the 30-year was off by 8/32, yielding 4.46%.

Turning to the day's economic data, the Labor Department's initial jobless claims for the week ended Aug. 16 came in at 432,000, below economists' expectations for a read of 438,000. The previous week's unemployment tally was revised to 450,000 from 445,000. Stone said that although the jobless number came in better than expected, it still reveals weakness in the economy.

The Philadelphia Federal Reserve manufacturing index increased to negative 12.7 in August, ahead of analysts' estimates for a read of minus 13.4 and up from a negative 16.3 in July.

"We know the economy's getting weak and with some respects getting weaker," said Stone. He said he sees GDP bottoming as it hits zero growth in the first quarter of 2009. "We do see the future looking brighter. It's just not right now."

The Conference Board's leading indicators report showed a 0.7% decrease for July, a decline that was greater than expected.

As for corporate earnings, several consumer-oriented businesses announced financial results before the open. Heinz (HNZ Quote) announced rising profits and trumped expectations, thanks to sales growth both domestically and overseas. Heinz shares ended the day up 0.5% at $51.99. Fast-food restaurant Burger King (BKC Quote) posted a 42% year-over-year increase in profits, beating estimates. The stock faced selling pressure, however, on declining profit margins. Shares stumbled 7.1% to $25.50.