Stocks Fight Their Way Back to Mixed Close

The FDIC said that it foresaw the addition of more banks to its list as credit conditions continue to deteriorate.

In the technology space, PC maker Hewlett-Packard (HPQ Quote) has completed its purchase of Electronic Data Systems. H-P had announced the $13.3 billion deal in May. H-P shares rose fractionally to $46.86.

Ahead of its merger with Northwest Airlines (NWA Quote), Delta (DAL Quote) said it took out a $1 billion loan to increase its cash position as it finalizes the joining of the two companies. Northwest shares tumbled 4.6% to $9.55, and Delta dropped 5.1% to $7.94.

In earnings news, mining company Rio Tinto (RTP Quote) announced earnings for the first half of 2008 that increased from a year ago and beat analyst estimates. Shares edged up 0.7% to $382.15.

Specialty retailers Chico's FAS (CHS Quote) and American Eagle (AEO Quote) reported quarterly results that declined year over year but came in ahead of expectations. Chico's rose 2.2% to $5.09, and American Eagle added 4% to $14.29. Meanwhile, discount-store operator Big Lots (BIG Quote) posted rising profits and beat the Street's forecasts. Shares took a 7.1% hit to $30.72, however, after Big Lots issued a disappointing revenue forecast.

Smithfield Foods (SFD Quote) swung to a first-quarter loss on rising commodity costs, and shares dropped 6.9% to $21.91.

As for economic data, the Conference Board's measure of August consumer confidence came in at 56.9, showing an improvement in sentiment from July's reading of 51.9 and a better look than economists had been expecting.