Positive trends give a lift to market; Dow gains 32

From wire reports

July 2, 2008

NEW YORK - Wall Street began the third quarter with an erratic session and modest gain yesterday after a mix of news made it clear the country is still deep in economic problems but may have some positive trends.

The session brought more discouraging news for investors: Oil rose again toward record-high levels, a report showed that U.S. manufacturers are still under duress and Ford Motor Co. said its June sales tumbled. This all raised the market's fears that the economy - still reeling from soaring commodities prices and the lingering credit crisis - is not any closer to turning around.

Yet General Motors Corp.'s sales, while falling 18.2 percent during June, came in above analysts' forecasts, retaining Detroit's lead over Toyota Motor Corp. and sending the automaker's shares higher. The Dow Jones industrial average, down more than 150 points earlier, rose 32.25 to 11,382.26, while the Standard & Poor's 500 index gained 4.91 to 1,284.91. The Nasdaq composite advanced 11.99 to 2,304.97.

The Russell 2000 index of smaller companies added 1.93 to 691.59.

The Sun-Bloomberg index of the top stocks in Maryland rose 0.85 to 289.14. United Therapeutics Corp. gained $5.20 to $102.95, while FTI Consulting Inc. climbed $2.84 to $71.30.

Declining issues led advancers by just under a 2-to-1 margin on the New York Stock Exchange, on volume of 1.64 billion shares.

"A bounce like this wasn't unexpected," said Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co. He said GM's sales beating Toyota gave the Dow a lift, as did a late-day partial pullback in oil prices.

In corporate news, Lehman Brothers Holdings Inc. shares rose $1.15 to $20.96 after a steep decline Monday. The nation's fourth-largest investment bank had been the subject of rumors that it might sell itself to Britain's Barclays PLC at a discount price.

The Associated Press and Bloomberg News contributed to this article.

Stock of Interest

Legg Mason Inc.

Shares fell $2.32, or 5.3 percent, to $41.25 after the Baltimore-based investment management company said agreements to support its money funds will cut earnings and analysts lowered their ratings.