Stocks open higher
Markets get a lift from Buffett's $5 billion investment in Goldman Sachs as investors await more testimony on bailout.
NEW YORK (CNNMoney.com) -- The Nasdaq gained and the broader market struggled at Wednesday's open as investors welcomed Warren Buffett's $5 billion investment in Goldman Sachs, but remained wary as the debate over a bank bailout plan continues.
The Dow Jones industrial average (INDU) and the Standard & Poor's 500 (SPX) index were little changed in the early going, while the Nasdaq composite (COMP) inched higher.
The Goldman Sachs (GS, Fortune 500) investment from Buffett's Berkshire Hathaway firm was announced late Tuesday, and was seen as a vote of confidence. Goldman gained 2.5% and the broader bank sector was modestly higher,
"The news of Warren Buffet investing $5 billion in Goldman Sachs is being interpreted as a vote in confidence, and obviously that is what the markets have been lacking here," said Peter Cardillo, chief market economist with Avalon Partners
Also, the Federal Reserve Bank said Wednesday it struck a deal with governments of Australia, Denmark, Norway and Sweden for $30 billion in loans, so it can lend money to U.S. banks.
This follows a weak session on Tuesday, when the Dow dropped nearly 1.5% as a Senate panel grilled Treasury Secretary Henry Paulson and Federal Reserve Ben Bernanke on their proposed $700 billion bailout for the financial services industry.
Bernanke is scheduled to discuss the effects of the credit crunch and housing crisis Wednesday with the Joint Economic Committee.
"He'll probably stress that something needs to be done," said Cardillo. "The longer the process [of a bailout] lingers, the greater the uncertainties that surround the stock market."
Also, Bernanke and Paulson are both expected to testify before the House Financial Services Committee.
Economy: The markets will get some more information about the housing market at 10 a.m. ET, the National Association of Realtors releases its monthly report on existing home sales. A consensus of economists interviewed by Briefing.com projects an annual sales rate of 4.93 million in August, down from 5 million the prior month.
Markets: European markets were down in midday trading, while Japanese stocks ended up slightly. The dollar was down versus the euro, the British pound and the yen.
Oil: Oil was up $2.54 a barrel to $109.15. A pre-report survey from oil analyst Platts projects a 1.6 million barrel increase in U.S. commercial crude oil supply when the Energy Information Administration releases weekly data at 10:35 a.m. ET. 
