Stocks try to rebound

NEW YORK (CNNMoney.com) -- Wall Street appeared to overcome its subprime fears that sent major gauges tumbling in the previous session, despite a lack of any significant economic readings.

The Dow Jones industrial average (up 37.55 to 13,539.25, Charts) climbed about 0.2 percent about an hour into the session. The broader S&P 500 (up 3.26 to 1,513.38, Charts) climbed nearly 0.2 percent and the tech-fueled Nasdaq (up 4.26 to 2,643.42, Charts) rose 0.1 percent.

Major gauges plunged Tuesday on rising oil prices, a handful of profit warnings and after credit rating agencies Standard & Poor's and Moody's downgraded securities backed by subprime mortgages.

The action taken by the ratings firms raised worries that problems in the subprime mortgage sector, which gives home loans to borrowers with poor credit, could further depress the housing sector.

Treasury prices, which rallied Tuesday on the news, eased Wednesday lifting the yield on the 10-year benchmark note to 5.04 percent, up from 5.02 percent late Wednesday.

The dollar, which fell to a record low against the euro Tuesday on the subprime worries, hit another record low of $1.3784 early Wednesday before rebounding slightly, while the greenback was lower against the yen.

Oil prices slipped just after the weekly report on U.S. fuel inventories. U.S. light crude lost 33 cents to $72.48 a barrel.

COMEX gold for August climbed 60 cents to $665 an ounce.

Overseas, European stocks tumbled Wednesday, while major Asian markets finished the session lower.

Apart from the weekly oil inventory report, no major economic reports are on tap.

Biotech firm Genentech Inc. (down $0.20 to $74.65, Charts) and fast-food giant Yum Brands Inc. (up $1.04 to $33.99, Charts, Fortune 500) are both set to report quarterly results after the closing bell.

In major corporate news, Gerdau AmeriSteel (down $0.88 to $14.81, Charts), the U.S. unit of Brazilian steelmaker Metalurgica Gerdau, agreed to buy rival Chaparral Steel in a cash deal worth $4.2 billion. Chaparral Steel (up $7.80 to $83.49, Charts) shares soared over 10 percent in early trade on the Nasdaq.

Home builder Ryland Group (down $0.60 to $35.71, Charts, Fortune 500) became the latest company in the sector to warn of losses from weakness in demand and prices of new homes and a write down in the value of its land holdings and inventory.

Apparel company Liz Claiborne (down $0.16 to $37.07, Charts, Fortune 500) is expected to announce plans Wednesday to sell 16 of its 36 brands, according to a report in the Wall Street Journal.

Supermarket magnate Ron Burkle and Internet entrepreneur Brad Greenspan met with members of the Dow Jones (down $0.07 to $57.62, Charts) board Tuesday to discuss a partial purchase of the Wall Street Journal publisher, according to a report in the New York Times. The two are trying to provide an alternative to the $5 billion offer for the company from News Corp. (up $0.02 to $23.07, Charts, Fortune 500)