Techs gain after tough session
Nasdaq and S&P 500 hold on to slim gains, while the Dow ends lower as investors try to look beyond weak reports on housing and consumer confidence.
NEW YORK (CNNMoney.com) -- The Nasdaq composite managed gains Tuesday, while the broader market was mixed, as weak readings on housing and consumer confidence vied with investor attempts to push stocks higher.
The Dow Jones industrial average (INDU) closed down about 0.1%, while the broader Standard & Poor's 500 (SPX) index added 0.2%. The Nasdaq composite (COMP) gained 0.6%.
Stocks struggled for direction through the morning as investors held back after Monday's advance. Tuesday's economic news, which included weaker-than-expected reports on home prices and consumer confidence, also added to investor trepidation.
However, stocks were mostly higher by the afternoon. Weakness in select financial and oil services stocks offset the Dow's advance.
"A lot of people are hoping that we are at a bottom here and that things are starting to pick up," said John Forelli, portfolio manager at Independence Investments.
He said that while the economy is likely mired in a recession and likely to remain there for some time, stocks are starting to anticipate a recovery later in the year. Such bets have helped stocks recover in recent sessions, with the Dow up almost 7% in just over a week.
Monday was the second up session in a row for the stock market after a strong week on Wall Street that was influenced by the Federal Reserve's decision to cut interest rates for a sixth time in a row and make an additional $200 billion available to banks.
Reports are due Wednesday on durable goods orders and new home Sales. Wednesday also brings the weekly oil inventory report.
Clear Channel shares could be active Wednesday after sliding in after-hours trading Tuesday. After the close Tuesday, a Wall Street Journal report said that the radio broadcaster's proposed $19 billion sale to a pair of private equity firms could be in danger. (Full story).
Economic news. The S&P/Case-Shiller index showed home prices in 20 key markets dropped 10.7% in January, the biggest drop on record.
Another report showed that consumer confidence slumped to 64.5 in March, from 75 in the previous month, a five-year low. Economists surveyed by Briefing.com expected a smaller slide to 73.4.
Consumer confidence slipped amid a struggling stock market, surging oil, gold and gas prices, a weak dollar and the ongoing credit and housing market crises.
Treasury Secretary Henry Paulson, speaking in the afternoon, said that the current social security system isn't sustainable financially and will run dry in 2041 unless quick action is taken to fix it.
Company news. Yahoo (YHOO, Fortune 500) was among the session's big tech stock gainers, after Citigroup upgraded it to "buy" from "hold" on bets that Microsoft (MSFT, Fortune 500) will raise its bid for the search engine to $34 a share from $31 a share.
Thornburg Mortgage (TMA) shares rallied 36% in active New York Stock Exchange trading after the company said it will raise $1.35 billion in bonds in a private placement as a means of avoiding filing for bankruptcy.
But a number of other financial stocks declined on heavy trading volume, including Bank of America (BAC, Fortune 500), which was downgraded by Merrill Lynch (MER, Fortune 500), according to reports. Also, Merrill Lynch had its earnings forecast cut by JP Morgan Chase and UBS (UBS).
Shares of Bear Stearns (BSC, Fortune 500) rallied Monday on news that JP Morgan Chase (JPM, Fortune 500) had quintupled its bid for the troubled bank. However, shares of both companies slipped Tuesday.
The Department of Justice said late Monday that it has approved the merger between Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR). The Federal Communications Commission still needs to OK the deal before it can be completed. Shares of the two companies jumped late Monday, but slipped on Tuesday.
Valero Energy (VLO, Fortune 500) shares slipped after the oil refiner warned that first-quarter earnings won't meet forecasts.
Market breadth was positive. On the New York Stock Exchange, advancers beat decliners 5 to 3 on volume of 1.48 billion shares. On the Nasdaq, advancers topped decliners 3 to 2 on volume of 2.11 billion shares.
Commodities. U.S. light, crude oil for May delivery rose 36 cents to settle at $101.22 a barrel on the New York Mercantile Exchange. Oil prices hit a record $111.80 in electronic trading last week.
COMEX gold for April delivery rose $16.30 to settle at $935 an ounce. Gold hit an all-time trading high of $1,033.90 an ounce one week ago.
Other markets. The dollar gained versus the euro and fell versus the yen. The greenback hit an all-time low versus the euro and a 13-year low versus the yen last week, but has since recovered a bit.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.50% from 3.55% late Monday. Bond prices and yields move in opposite directions. 
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