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

Fannie Mae

( FNM) and

Freddie Mac

( FRE).


Dow Jones Industrial Average

was recently up 11 points to 11,522, and the

S&P 500

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


(DELL) - Get Dell Technologies Inc Class C Report

, 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

Lehman Brothers

( LEH), has ended talks with the struggling brokerage.

Meanwhile, mining company


(SSL) - Get Sasol Limited Sponsored ADR Report

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

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BHP Billiton

(BHP) - Get BHP Group Ltd Sponsored ADR Report

, said that slowing global demand for commodities will bring shareholders of

Rio Tinto

( 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

TCF Financial




(BBT) - Get BB&T Corporation Report

to hold from buy and to sell from hold, respectively.


(WB) - Get Weibo Corp Sponsored ADR Class A Report

also took a hit from Merrill Lynch, which cut the bank to underperform from neutral.

Merrill also took consumer conglomerate

Procter & Gamble

(PG) - Get Procter & Gamble Company Report

down a peg, to neutral from outperform, saying the stock trades at an unjustified premium.


Pulte Home

(PHM) - Get PulteGroup, Inc. Report


KB Home

(KBH) - Get KB Home Report

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.