Midday Market Update: U.S. Stocks Find Positive Ground

              

After a tumultuous week in the red, it seems the Street is trying something new - positive territory. Out of the gate this morning, the Dow tacked on more than 150 points, but has since backed off. At last look, U.S. stocks were trading moderately higher, rebounding after 2 days of losses, as investors digested a Wall Street Journal report that Citigroup Inc. (C) may put itself up for sale.

Economic News

There are no reports slated for release today. For a look at next week's earnings calendar, click here.

Equity Update

In earnings news, Salesforce.com (CRM: sentiment, chart, options) said that its third-quarter net income rose to $10.1 million, or 8 cents per share, from $6.5 million, or 5 cents per share, in the same quarter last year. Revenue increased to $276.5 million from $192.8 million. Analysts, on average, had forecast earnings of 8 cents per share on $273.6 million in sales. The company projected fourth-quarter earnings of 6 cents to 7 cents per share, and revenue of $284 million to $285 million. For fiscal 2010, the firm projected revenue of $1.35 billion to $1.36 billion. The stock tagged a fresh 3-year low this morning, and at last check, the shares were trading down more than 5%.

Cleveland-based financial firm KeyCorp (KEY: sentiment, chart, options) tumbled to a new all-time low this morning after slashing its common-stock dividend for the second time this year. The bank cut its quarterly payout by 67% to 6.25 cents per share from 18.75 cents, despite the fact that CEO Henry Meyer said last month he was "very comfortable" with the current dividend. Specifically, in a statement today he said, "The modification of our common dividend will help further strengthen Key's capital in light of the current uncertainty facing the U.S. and global economy." The slashed dividend could save KEY up to $428 million per year. At last look, the bank's shares were sitting on a loss of more than 25.5%.

Elsewhere, the Bank of New York Mellon (BK: sentiment, chart, options) became the latest financial firm to announce job cuts. The company said last night that it will trim 1,800 jobs, or roughly 4.2% of its global workforce. CEO Robert P. Kelly said the payroll reduction will aid in reducing expenses, and added, "We will take advantage of natural turnover to lessen the impact on existing staff." The shares of the firm were last seen down 1.5%.

Looking at the Numbers

At last check, the Dow Jones Industrial Average (DJIA – 7,593.15) had added 40.86 points, or 0.54%. Of the Dow's 30 components, 19 were trading in positive territory. Walt Disney (DIS) and Exxon Mobil (XOM) were found leading the advancing issues. For the 11 declining equities, J.P. Morgan Chase (JPM) and McDonald's (MCD) had tagged the biggest losses.

The S&P 500 Index (SPX – 753.85) climbed 1.41 points, or 0.19%. The Nasdaq Composite (COMP – 1,320.21) gained 4.09 points, or 0.31%.

Checking Commodities

Heading for its third consecutive weekly gain, gold is on the rise today, as investors sought it out as an alternative investment to the greenback. As the U.S. dollar weakened against the euro, the malleable metal added $47.61, or 6.37%, to trade at $795.55 an ounce.

Throughout most of the morning, crude oil was little changed. Gold's gain bolstered the appeal for the commodity, but global recession fears spurred demand concerns. The combination left crude oil dawdling around the breakeven point during the early part of the trading day. By noon, the bears were winning the battle, and crude oil had dropped 47 cents, or 0.97%, to trade at $48.95 per barrel.

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