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Earlier Dow fell below 10K amid news new home sales hit a record low
NEW YORK — Bargain hunters picked through a beaten-down stock market Wednesday, helping major indexes end slightly higher after another slump triggered by disappointing economics reports.
The market opened l?ower following weak reports on homes sales and durable goods orders, the latest signs that the economic recovery is losing steam.
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Major Market Indices
The Dow briefly fell below 10,000 for the second straight day before moving just back above that level in the afternoon. Prior to Tuesday, the Dow had most recently traded below 10,000 on July 20.
"There are some buyers today," said Albert Meyer, portfolio manager of the Mirzam Capital Appreciation Fund. Meyer said some investors might see the market as oversold following a four-day losing streak, which took 375 points off the Dow.
Investors started the day with more bad news about the economy. Sales of new homes fell last month to the lowest level on record, the latest indication that home sales are stagnating after the expiration of a homebuyer tax credit this spring.
A separate report from the Commerce Department showed that durable goods orders grew only slightly last month, falling shy of ?expectations and disappointing investors who had been hoping that the U.S. manufacturing sector would continue to pick up.
Wednesday's trading after the reports epitomized the volatility that has been seen in the market in recent weeks.
Sandy Mehta, principal and chief investment officer of Value Investment Principals, said stocks are in a volatile range right now, which has been exacerbated by the seasonal summer slowdown in trading.
"We rally, we sell off. We rally, we sell off," Mehta said. "It's just the nature of the market right now."
Stocks have been hit hard in recent days because of concerns about whether the economy will fall back into recession or at least be stuck in a prolonged period of very slow growth. The Dow is heading into its fifth straight day of declines.
New home sales fell 12.4 percent in July to an annual rate of 276,600, the Commerce Department reported. That was the??? slowest pace on records dating back to 1963 and worse than the pace forecast by economists polled by Thomson Reuters. A day earlier, the National Association of Realtors said sales of existing homes, a far greater proportion of the housing market, fell to a 15-year low in July.
According to preliminary calculations, the Dow Jones industrial average rose 19.61, or 0.2 percent, to 10,060.06 in afternoon trading.
Broader market barometers also rose. The Standard & Poor's 500 index rose 3.46, or 0.33 percent, to 1,055.33, while the Nasdaq composite index rose 17.78, or 0.84 percent, to 2,141.54.
The fear among investors is that if the economy continues to worsen, corporate earnings will start to weaken, just as economic indicators have.
"The worry is, if the economy looks worse, maybe companies start ratcheting down" their earnings forecasts, said Russell Croft, portfolio manager at Croft Leominster Investment Management. "It's still a very uncertain time."
Interest rates backed off ???their lows for the day as investors looked for bargains in the stock market. Rates dropped sharply after the housing and durable goods reports Wednesday morning.
The yield on the 10-year Treasury note fell as low as 2.42 percent during morning trading before climbing back to 2.53 percent. Its yield touched a level not reached since January 2009, when the stock market was heading toward its lowest level in 12 years
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Its yield is helps set interest rates on mortgages and other consumer loans.
Despite the ultra-low borrowing rates, home sales have been weak since a home buyer tax credit expired at the end of April. High unemployment has kept people from buying homes, and banks still reeling from the crisis in the mortgage-backed securities market have been cautious in making new loans.
Overseas, Japanese shares fell again after the yen hit a new 15-year high against the dollar and a nine-year high against the euro. The high yen hurts profitability at major Japanese exporters. Japan's Nikkei??? stock average fell 1.7 percent. European markets were also lower.
? 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Swollen rivers force Pakistanis to use zip line
MINGORA, Pakistan –When the floods hit the Swat Valley four weeks ago, nearly every bridge was wiped out and miles of mountainside roads crumbled into the raging water.
Hundreds of thousands of people have now been cut off from the rest of the country, but they are still crossing the rivers, slowly and sometimes dangerously.
Flood victims use a cable car on a river as they transport food to their camps in Matta, a region of Swat Valley in northern Pakistan on Aug. 11.
In the town of Mingora, we found a booming raft business. The boats are crudely strung together with planks of wood ??and inflatable tubes. They don’t look like they could pass a safety test in a swimming pool, let alone crossing the fast-moving Swat River.
But about 1,000 people a day still wait in line, pay 20 rupees (about 40 cents) and stack everything they can on board until the planks buckle and the rafts sink low in the water.
The Pakistani military is overseeing the crossing. They picked the location because they said it was the shortest and calmest crossing. But looking out across the river “short and calm” are not the first adjectives to come to mind.
When a boat is launched, the current pushes hard while two men with oars in the back furiously paddle to try to?? get to the other side. On the day we were there watching from the banks of the river, everyone made it. But peach farmer Sulman Ali said he has seen accidents.
“I am scared every time I step on board,” he said. But Ali, like many others here, has no choice. The flood destroyed most of his peaches, and those that remain will rot if he doesn’t pick them now and get them to town. The money he makes from the fruit is supposed to support his family for the rest of the year.
People in Swat Valley have been forced to walk because the roads have been swept away.
Zip line across
Further up river, there is similar necessity to cross, but the water churns into dangerous rapids. Boats won’t make it, so the Pakistani military has set up a zip line.
Three rickety carts are set up to get manually pulled across the river along a cable. In one direction they move quickly, sliding down a decline, but coming back uphill it’s slow and jerky. At times the carts linger uncomfortably above the water.
Nearly everyone that used the zip line to cross the river had a similar story: their villages had been wiped away, there????was not enough food or medicine and very little help had arrived.
“Our village was destroyed and the children are getting sick,” one woman said just after she crossed via the zip line. “I have to go to my nephew’s funeral on this side of the river. He died from diarrhea two days ago.”
Long road ahead
Unfortunately, the people in Swat have become painfully familiar with adversity.
Several years ago the Pakistani Taliban grew in prominence and eventually controlled the entire region. In Mingora, the largest city in Swat Valley, those who opposed the Taliban’s radical
Islamic ideology were often killed. Their lifeless bodies were left hanging in the center of town with a note: anyone that removes this body will end up here as well.
A year and a half ago the Pakistani military launched an offensive to drive out the Taliban. It was successful, but Swat??? suffered extensive damage as a result of the military offensive and thousands fled to escape the fighting.
People had only just begun to return to the valley and rebuild when the floods hit. Now, by even the most optimistic estimates, it will take years and billions of dollars to rebuild their lives.

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Political novice Scott wins Fla. GOP vote; McCain cruises to easy victory
WASHINGTON — Alaska Sen. Lisa Murkowski fought to save her job Wednesday, locked in a stunningly tight Republican primary race against a political novice backed by Sarah Palin and tea party activists. The outlook was far brighter for another incumbent, Sen. John McCain, who won handily in Arizona.
With 98 percent of election day precincts counted, Murkowski trailed Joe Miller by 1,960 votes out of more than 91,000 counted. The race was too close to call, with as many as 16,000 absentee votes and an undetermined number of provisional??or questioned ballots, remaining to be counted starting on Aug. 31.
Murkowski would be the seventh incumbent — and fourth Republican — to lose in a year in which the tea party has scored huge victories in GOP Senate primaries and voters have shown a willingness to punish Republicans and a handful of Democrats with ties to Washington and party leadership. Miller is a Gulf War veteran and self-described "constitutional conservative."
It also was an outsider's night in Florida's GOP primary for governor, with big-spending upstart Rick Scott toppling veteran insider Bill McCollum, the state's attorney general who had the support of national party chiefs.
Five states — Arizona, Vermont and Oklahoma also voted — held nominating contests Tuesday, 10 weeks before the general election. The races highlighted dominant themes of this volatile election year, including anti-establishment anger and tea party challenges from the right.
Elsewhere, the establishment prevailed.
McCain easily cinched his party's renomination — and likely re-election this fall — by dispatching former Rep. J.D. Hayworth, who had tea party support. The 2008 GOP presidential nominee spent??more than $20 million on the primary. Rep. Kendrick Meek cruised to the Democratic Senate nod in Florida against a wealthy political newcomer. And a slew of Republican and Democratic members of Congress withstood primary challenges.
But Murkowski's unexpectedly tough battle and Scott's victory underscored the unpredictability of this election year ahead of November, when control of both houses of Congress will be at stake.
The 2010 midterm elections already have seen six incumbents lose. Sen. Robert Bennett, R-Utah, was ousted by his party. Sen. Arlen Specter, D-Pa., and Reps. Alan Mollohan, D-W.Va., Parker Griffith, R-Ala., Bob Inglis, R-S.C., and Carolyn Cheeks Kilpatrick, D-Mich., failed in primary bids.
Now Murkowski might.
Appointed in 2002, she is seeking her second full term and was expected to coast to re-election.
Miller initially looked like a long shot, but he started to gain steam as the primary approached. He drew the? backing of the Tea Party Express, a California-based group that's run ads, held rallies and questioned Murkowski's conservative credentials. Also, Palin, the former Alaska governor, and her husband, Todd, rallied behind Miller in the final days, lending their name to get-out-the-vote efforts.
Like Utah's Bennett, Murkowski had stressed that seniority mattered in the U.S. Senate, where years of service translated into billions of dollars for roads, ports, bridges and other home state projects. Alaskan voters were reminded of that earlier this month when former Sen. Ted Stevens died in a plane crash. For four decades, Stevens consistently delivered federal dollars that transformed the 49th state.
The race also had personal overtones.
Palin trounced Murkowski's father, Frank Murkowski, in a 2006 GOP gubernatorial primary that launched the 2008 vice presidential nominee's national political career. And when Palin abruptly resigned her governor's post last summer, Lisa Murkowski said she was "deeply disappointed that the governor has decided to abandon the state and her constituents before her term has concluded."
The GOP primary winner will be favored in November over Sitka Mayor Scott McAdams, who won the Democratic nomination.
In Florida, Scott's ??financial might and criticism of his opponent as a typical tax-raising politician proved too much for McCollum, a former congressman, in the bitter GOP gubernatorial race.
Scott, who made a fortune in the health care industry and spent $39 million of it blanketing the state with TV ads, resonated with GOP voters as a "conservative outsider" who could run state government like an efficient business and reduce taxes. He overcame accusations that he was in charge when his former hospital conglomerate paid $1.7 billion to settle federal Medicare fraud charges.
That issue is likely to come up again as he faces Alex Sink, the state's chief financial officer, who sailed to the Democratic nomination.
The peril establishment candidates face was not lost on McCain, who was at the pinnacle of the GOP hierarchy just two years ago as the Republican presidential nominee.
"I promise you, I take nothing for granted and will fight with every ounce of strength and conviction I possess to make the case for my continued service in the Senate," McCain told supporters in Arizona, quickly focusing on the fall campaign in his bid for a fifth term.
Also in Arizona, the son of former Vice President Dan Quayle won the Republican primary for an Arizona congressional seat. Ben Quayle emerged from a crowded field in the fight for an open seat in a Republican-leaning district in the Phoenix area.
Vermont Democratic Sen. Patrick Leahy, first elected in 1974, coasted to renomination for what is likely to be a new term in November.
In the Democratic gubernatorial race, state Senate President Pro Tem Peter Shumlin claimed victory Wednesday in the five-way contest. "It appears that we have won," Shumlin told The Associated Press.
He held a lead of fewer???than 200 votes over state Sen. Douglas Racine, with Secretary of State Deb Markowitz a very close third.
The AP has not called the winner because the race is still too close with nearly all the votes counted.
If the vote count holds, either Racine or Markowitz could ask for a recount.
The winner of the Democratic primary will face Republican Lt. Gov. Brian Dubie, who did not face a primary opponent.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.