Stocks on Wall Street Trade Mixed - TheStreet

Updated from 10:45 a.m. EDT

Stocks in the U.S. quickly retreated from an upside open to trade choppily Wednesday as investors monitored the government's bailout of the banking industry and more commentary from

Federal Reserve

Chairman Ben Bernanke.


Dow Jones Industrial Average

was recently down 12 points to 10,842, and the

S&P 500

lost 0.3 points to 1188. The


gained 9.6 points to 2163.

On Tuesday, stocks finished on the downside after traders listened to Bernanke and Treasury Secretary Henry outline for Congress their $700 billion bailout package for financial-services firms.

"I think investors are sitting back and waiting to see what Congress does," said Fred Dickson, director of private client research and chief market strategist for DA Davidson. "Hopefully, we'll see something by the end of the week." While uncertainty remains, the market will trade with a great deal of volatility, he said.

After the close of Tuesday's trading, several financial firms signed deals to raise capital. Insurance giant


(AIG) - Get Report

agreed to an

$85 billion credit facility

with the Fed.

Warren Buffett's Berkshire Hathaway

(BRK.A) - Get Report

inked a deal to buy as much as a $10 billion stake in

Goldman Sachs

(GS) - Get Report

. Goldman, along with rival

Morgan Stanley

(MS) - Get Report

, on Sunday agreed to become a bank holding company instead of an investment bank.

Dickson said he was surprised the market didn't bounce higher off the news of Berkshire's investment in Goldman, especially after a sizeable drop in the major indices during the last hour of Monday's trading.

Berkshire wasn't the only firm that may grab a piece of Goldman.

Japanese bank Sumitomo Mitsui Financial

may invest between 100 billion and 300 billion yen in Goldman, although there are conflicting reports about a potential deal.

Meanwhile, the

Associated Press

reports that the FBI is spearheading a

fraud investigation

into AIG, bankrupt brokerage

Lehman Brothers


Fannie Mae



Freddie Mac


. The four companies are at the center of the government's $700 billion bailout package.

The Fed also went ahead with development of $30 billion in

swap facilities with foreign banks

to provide liquidity to overseas markets.

A series of analyst downgrades of regional banks could offer a drag on financial stocks. Robert W. Baird downgraded


(IBKC) - Get Report

, and


(STI) - Get Report

to neutral from outperform and

M&T Bank

(MTB) - Get Report

to underperform from neutral. Citigroup took

Regions Financial

(RF) - Get Report

to sell from hold and dropped

Zions Bancorp

(ZION) - Get Report

to hold from buy.

Outside the financial sector, home retailer


(LOW) - Get Report

forecast 2008 earnings of $1.48 to $1.56 a share on modest sales growth. Analysts expect profit to fall within the forecasted range.

In the technology space,




Time Warner


were prepping for discussions about

Time Warner's AOL business

, according to a report in the

Financial Times


As for economic data, the National Association of Realtors' look at August exiting-home sales came in at an annual rate of 4.91 million units, slightly below economists' estimates and down from 5.02 million in July.


The NAR estimates that 35-to-40% of all sales are of distressed property, so underlying private activity is weaker than the headlines and there is little sign of imminent improvement," wrote Ian Shepherdson, chief U.S. economist for High Frequency Economics. Although inventories appear to be improving, they are "still way too high," he wrote.

The Energy Information Administration's report on crude oil inventories for the week ended Sept. 20 is due out later this morning.

In commodities, crude oil was rising 64 cents to $107.25 a barrel, and gold was gaining $2.10 to $893.30 an ounce.

Longer-dated U.S. Treasury securities were rising in price. The 10-year note was up 5/32 to yield 3.78%, and the 30-year was gaining 8/32, yielding 4.36%. The dollar was gaining on its major foreign competitors.

Abroad, the FTSE in London and the Dax in Frankfurt were trading lower. Japan's Nikkei and Hong Kong's Hang Seng finished in the green.