Stocks Close Mixed After Choppy Day

Morgan Stanley (MS) weighed on financials after it reported that it swung to a first-quarter loss on a rebound in its bond prices. The company also is cutting its quarterly dividend 81% to 5 cents a share. Shares gave up 9% to $22.44.

Wells Fargo(WFC) shares lost 3.4% to $18.18 after staying in positive territory most of the day following its quarterly report . The bank posted a profit of $3.05 billion, in line with its prior forecast, as rising credit losses were offset by a surge in mortgage banking and benefits from the Wachovia acquisition. Revenue came in slightly higher than its forecast at $21.02 billion.

Elsewhere, aircraft and defense products manufacturer Boeing (BA) missed analysts' profit and revenue expectations and lowered its full-year forecast, but shares rose 1.8% to $37.30.

Continental Airlines (CAL) posted a narrower-than-expected loss, but its revenue fell 17%. Shares dropped 9.3% to $13.60.

In other earnings, hamburger maker McDonald's(MCD) beat on the top and bottom line in the first quarter, as profit increased 3.5%, and AT&T (T) reported a better-than-expected profit on sales that were slightly light. McDonald's fell 2.5% to $54.25, however, while AT&T ticked up 1.8% to $25.74.

The dollar was recently weaker against the yen and stronger vs. the pound and euro. Longer-dated Treasuries were falling. The 10-year was losing 11/32 to yield 2.9%, while the 30-year lost 1-2/32, yielding 3.8%.

As for commodities, oil fell 30 cents to settle at $48.85 a barrel, and gold rose $9.80 to $892.50 an ounce.

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