Updated from 9:44 a.m. EDT
Stocks on Wall Street were churning near the baseline Tuesday as investors continued to digest the government's takeover of mortgage giants
( FNM) and
Dow Jones Industrial Average
was recently up 11 points to 11,522, and the
ticked up 1.9 points to 1262. The
dropped 4 points to 2266.
On Monday, the major indices finished with solid gains following the government takeover of Fannie and Freddie, which was announced over the weekend. The two companies have been at the epicenter of the housing and credit crises, and questions about their solvency had contributed to worries about the entire financial-services industry.
After that day's close, a
regulatory filing showed Michael Dell
, CEO of PC maker
, bought $100 million in the company's stock last week.
Ahead of the new day's trading,
Dow Jones Newswires
reported that South Korea Development bank, which had earlier been rumored ready to buy a stake in
( LEH), has ended talks with the struggling brokerage.
Meanwhile, mining company
reported full-year profit rose 32% from a year ago. The company also said it expects continued growth in the year ahead.
Marius Kloppers, CEO of fellow miner
, said that slowing global demand for commodities will bring shareholders of
( RTP) to support BHP's hostile bid for the company.
Several stocks could be ready to move following analyst actions. Stifel Nicolaus downgraded banking companies
to hold from buy and to sell from hold, respectively.
also took a hit from Merrill Lynch, which cut the bank to underperform from neutral.
Merrill also took consumer conglomerate
Procter & Gamble
down a peg, to neutral from outperform, saying the stock trades at an unjustified premium.
both got downgraded at Credit Suisse to neutral from outperform.
As for economic data, the National Association of Realtors' pending-home sales figures showed a 3.2% contraction in July to an index reading of 86.5, a greater decline than was expected by economists. The Census Bureau reported that wholesale inventories in July rose to 1.4% from 0.9% in June. Analysts were predicting an increase of 0.7%.
Looking at commodities, the price of crude oil was down $1.88 to $104.46 a barrel. Gold was shedding $16.70 to $785.80 an ounce.
Prices of longer-dated U.S. Treasury securities were mixed. The 10-year was down 2/32 to yield 3.68%, and the 30-year was adding 6/32, yielding 4.26%. The dollar was softening against the euro, yen and pound.
Overseas, European indices, such as London's FTSE and Frankfurt's Dax, were mainly trading higher. In Asia, the Nikkei in Japan and the Hang Seng in Hong Kong lost ground.