Midday Report: Oil Bounces Even as Inventories Climb; Choppy Trading

Stocks inched higher after choppy early trading in which traders seemed unable to determine a direction after a days-long losing streak. The Dow Jones Industrial Average has endured seven days of losses. The services sector continued to expand at a solid pace in July, according to the latest ISM Non-Manufacturing Index. The measure remained above the 50-level indicative of expansion, a sign the consumer continues to spend. Oil rebounded to $40 a barrel, despite a surprise increase in the number of barrels of crude in domestic inventories. Crude hit its lowest level since April on Tuesday over continued fears of a domestic supply glut, weaker demand and ballooning output overseas. AIG (AIG) - Get Report rose after upping its buyback plans amid pressure to break itself up. The insurance firm raised its current repurchase program by $3 billion. TheStreet's Keris Lahiff reports from Wall Street.