Dow gains, Nasdaq struggles

NEW YORK (CNNMoney.com) -- Stocks were mixed Thursday morning, as investors welcomed Bank of America's $2 billion investment in lender Countrywide Financial, but remained concerned about the credit and mortgage markets.

The Dow Jones industrial average (up 34.06 to 13,270.19, Charts) added about 0.2 percent in the early going, while the broader S&P 500 (up 2.31 to 1,466.38, Charts) index was barely changed. The tech-fueled Nasdaq Composite (down 0.57 to 2,552.23, Charts) inched lower.

Treasury prices slipped Thursday morning, raising the corresponding yields as investors continued to step back from the 'flight to quality' of earlier in the week. The dollar rose versus the yen and fell versus the euro. Oil and gold prices rose in the early going.

The major stock gauges posted slim gains at the open Thursday morning as investors welcomed news that Bank of America (down $0.02 to $51.63, Charts, Fortune 500) is investing $2 billion in troubled mortgage lender Countrywide Financial (up $1.34 to $23.16, Charts, Fortune 500).

However, concerns about the mortgage and credit markets remain in place, cutting into any advance.

Stocks have been in recovery mode the last week after a tough month marred by worries about the impact of the tightening credit market on equities and the economy. Investors have taken comfort in corporate takeover talk, big infusions of cash from central banks around the world and bets that the Federal Reserve will cut the fed funds rate - which impacts consumer loans - at its policy meeting next month.

Last week, the central bank cut the largely symbolic discount rate - the rate at which banks borrow directly from the central bank.

In corporate news, the sale of Home Depot's wholesale supple division, due to close Thursday, could be in trouble, according to reports. Shares of Dow component Home Depot fell 2 percent.

Treasury prices fell, raising the benchmark 10-year note yield to 4.65 percent from 4.63 percent late Wednesday. Bond prices and yields move in opposite directions.

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

U.S. light crude oil for October delivery rose 59 cents to $69.85 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $4.60 to $673.30 an ounce.