Stocks slip on credit woes

NEW YORK (CNNMoney.com) -- Stocks slipped Tuesday morning as investors mulled ongoing problems in the credit and mortgage markets and opted to put their money in the relatively safer haven of bonds.

The Dow Jones industrial average (down 46.58 to 13,074.77, Charts) lost 0.3 percent in the early going, while the broader S&P 500 (down 1.56 to 1,443.99, Charts) index lost 0.2 percent. The tech-fueled Nasdaq Composite (down 1.96 to 2,506.63, Charts) index also lost a few points.

Treasury prices gained, lowering the benchmark 10-year note yield to 4.58 percent from 4.63 percent late Monday. Bond prices and yields move in opposite directions.

The Dow managed a comeback Monday, recovering from early losses sparked by renewed worries about the credit and mortgage markets. But those worries resumed Tuesday, limiting any potential advance.

Stocks have suffered over the last month amid worries about the tightening of credit - connected to the housing market collapse and problems with the subprime mortgage market. Subprime loans are loans made to consumers with less than ideal credit.

Financial, mortgage and consumer stocks in particular have suffered, including troubled lender Countrywide Financial (up $0.56 to $20.37, Charts, Fortune 500). The lender got some relief Tuesday on reports that billionaire investor Warren Buffett's Berkshire Hathaway (Charts) may be seeking to buy parts of the company.

Elsewhere in the sector, Capital One Financial (up $1.43 to $68.15, Charts, Fortune 500) said late Monday that it was closing its troubled GreenPoint mortgage unit, that it will cut 1,900 jobs and shutter 31 offices by the end of the year. Shares inched higher Tuesday.

Adding to concerns, an industry report showed that July foreclosures rose 9 percent from the previous month and almost doubled from a year ago.

Federal Reserve Chairman Ben Bernanke is meeting with Treasury Secretary Paulson and Senator Dodd later today to discuss the problems in the financial markets in a closed-door meeting.

The Federal Reserve has been infusing billions into the banking system in recent days as a means of trying to keep the liquidity moving. Last week, the Fed cut its largely symbolic discount rate - which affects banks and other lenders - by a half-percentage point to 5.75 percent. The move raised bets that it may cut the more widely-watched fed funds rate - which affects consumer loans - at the Sept. 18 policy meeting.

In other news, Target (down $0.29 to $58.80, Charts, Fortune 500) reported higher quarterly earnings that met forecasts, offering some reassurance about consumer spending.

In currency trading, the dollar slipped versus the euro and the yen.

U.S. light crude oil for September delivery was little changed, standing at $71.12 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $2.50 to $669 an ounce.