No direction for Wall Street

NEW YORK (CNNMoney.com) -- Stocks struggled at the start of Monday's session following last week's brutal selloff, as investors weighed more credit market news and the latest corporate earnings.

The Dow Jones industrial average (up 37.48 to 13,302.95, Charts) straddled the breakeven point in early trading, after posting its worst week in over 4 years last week.

Both the broader S&P 500 (down 0.54 to 1,458.41, Charts) and Nasdaq Composite index (down 3.06 to 2,559.18, Charts) edged higher.

Credit woes, which roiled global stock markets last week, did not appear to have subsided as American Home Mortgage Investment Corp. (up $0.00 to $10.47, Charts) announced late Friday that its banks are demanding it put up more cash after the mortgage lender wrote down the value of its loan and security portfolios significantly. Shares of the company lost about half of their value in premarket trade before trading was suspended on the Nasdaq.

Turmoil in the debt markets shook investors last week, raising concerns about a looming credit crunch. Tighter credit could bring the buyout boom, which has helped lift stock prices, to a halt.

It could also raise the borrowing costs for companies and pressure corporate earnings, and trim consumer spending, which is responsible for nearly three-quarters of the nation's economic activity.

On the earnings front, Dow component Verizon Communications (down $0.44 to $41.56, Charts, Fortune 500) reported improved earnings that met forecasts.

Treasury prices edged lower, lifting the yield on the 10-year note to 4.77 percent from the 4.76 percent level reached after bonds rallied Friday in reaction to the selloff in equities.

The dollar was lower against the euro and the yen.

Oil prices edged lower in electronic trading, cutting the price of U.S. light crude 5 cents to $76.97 a barrel.

In major corporate news, the family that controls Dow Jones (down $0.84 to $53.86, Charts) is due to make a decision on the $5 billion takeover bid by News Corp. (down $0.07 to $22.59, Charts, Fortune 500) by the end of Monday.

Dutch bank ABN Amro (up $0.71 to $48.02, Charts) adopted a neutral position on two rival takeover offer it has received after withdrawing support for a bid from British bank Barclays (up $0.21 to $55.14, Charts).

In overseas markets, as Asian markets finished the session modestly higher. European stocks were also higher.