MARKET REPORT: Dow crawls up on mixed reports

— Mixed earnings reports and a stronger dollar helped stocks finish about where they started Tuesday.

The Dow Jones industrial average wavered within a 100-point range as traders attempted to parse the direction of the economy amid a drop in home prices, a batch of weak earnings reports and a slight rise in consumer confidence.

Stocks started the day with losses after disappointing results from Texas Instruments Inc., U.S. Steel Corp. and Bristol-Myers Squibb Co. Du Pont, one of the 30 companies that make up the Dow average, fell 1 percent even though it beat estimates. Investors have had high expectations this season with three out of every four companies besting analyst estimates.

The Dow Jones industrial average rose 5.41 points, or 0.1 percent, to 11,169.46. The Standard & Poor’s 500 index rose 0.02 to 1,185.64, while the technology-focused Nasdaq composite index rose 6.44, or 0.3 percent, to 2,497.29.

The 30 stocks in the Dow were split down the middle, with half falling and half rising. Microsoft Corp. rose 2.8 percent to lead the index, while Procter & Gamble fell 1.1 percent as the measure’s laggard.

A gain in consumer confidence this month helped stockspare their losses and then edge higher in afternoon trading.

“The consumer confidence numbers were encouraging,” said Bernie McSherry, vice president of strategic initiatives at Cuttone and Co. It’s a signshoppers “may be reaching into their wallets heading into the holiday shopping season.”

Ford Motor Co. and Coach Inc. were among the few bright spots in the big batch of earnings reports released Tuesday.

Shares of Netflix Inc. rose $10.78, or 6.4 percent, to $177.62 amid rumors that the company may be a target of an acquisition by Apple Inc.

Traders were moving out of riskier assets as the dollar strengthened. A stronger dollar makes stocks and commodities more expensive because they are priced in dollars. The dollar rose against Japan’s yen and the euro Tuesday.

Home prices slid in August, renewing concerns about the health of the housing market. Fifteen of the 20 cities measured in the Standard & Poor’s/ Case-Shiller home price index saw price declines.

Bond prices fell slightly. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.64 percent from 2.56 percent late Monday.

Consoliated trading volume on the New York Stock Exchange came to 4.2 billion shares.

Business, Pages 26 on 10/27/2010

Upcoming Events