The Dow Jones industrial average (INDU) added 19 points or 0.2%. The index briefly turned positive for the year for the first time since Jan. 7.

The S&P 500 (SPX) index added 2 points or 0.2%. The Nasdaq composite (COMP) gained 8 points, or 0.4%.

Stocks had seesawed on both sides of the unchanged line throughout the session, managing gains just after the release of the housing market report and then again through the close.

The fact that stocks were mostly hanging in after Monday's big move was positive, said Ron Kiddoo, chief investment officer at Cozad Asset Management.

Pending home sales jumped 6.7% in April, and posted year-over-year increases in every region but the West, according to a National Association of Realtors report released on Tuesday. The report added to hopes that the housing market is starting to find its footing.

The collapse of the housing market set the recession in motion and investors have been looking for signs that it is nearing a recovery.

Stocks in the U.S. and abroad jumped Monday after upbeat reports on manufacturing, construction and consumer spending added to hopes that the pace of the recession is slowing.

Such bets have helped lift the stock market over the past three months, after the Dow and S&P 500 slumped to more than 12-year lows.

"On an almost daily basis, we're seeing signs of a lessening of the recession," Kiddoo said. "It's not the same as a recovery, but it's a sign that we're moving in the right direction."

Wednesday brings a number of closely-watched economic reports. The standout is the May report on private-sector employment from payroll services firm ADP.

Employers are expected to have cut 525,000 jobs after cutting 491,000 jobs in the previous month. The report sets the tone for the broader May non-farm payrolls report due out on Friday.

Other reports on tap for Wednesday include the May manufacturing report from the Institute for Supply Management and the weekly crude inventories report from the Energy Information Administration.

Financials: Three more banks announced plans to repay the government bailout money.

JPMorgan Chase (JPM, Fortune 500) said late Monday it plans to raise $5 billion toward the $25 billion it owes the government. American Express (AXP, Fortune 500) also said late Monday that it will raise $500 million toward the $3.4 billion it owes.

Morgan Stanley (MS, Fortune 500) said Tuesday that it plans to raise $2.2 billion.

The Federal Reserve is expected to announce next week which of the 19 banks that it stress tested are in good enough shape to pay back bailout funds. In order for banks to pay back the government, they must prove that they can raise money without depending on guarantees against losses provided by the Federal Deposit Insurance Corp. (FDIC).

In other financial news, Citigroup (C, Fortune 500) will withhold severance payments worth tens of millions of dollars to five former executives, according to a published report.

Citigroup will be kicked out of the Dow, with home, auto and commercial insurer Travelers (TRV, Fortune 500) taking its place starting Mon., June 8. The government now owns a large stake in Citi and the company is undergoing a restructuring.

Goldman Sachs (GS, Fortune 500) raised over $1.9 billion after selling part of its stake in Industrial & Commercial Bank of China.

GM: General Motors (GMGMQ) is selling its Hummer truck brand to Chinese industrial company Sichuan Tengzhong. The deal was announced one day after GM filed for bankruptcy protection, bringing an end to an era for the automaker.

The bankruptcy is seen as necessary by lawmakers who say the industry requires a broad overhaul. GM's bankruptcy will result in 20,000 job losses and the closure of 12 plants.

GM is now trading under the symbol GMGMQ, as of Tuesday. It will be removed from the S&P 500 at the close of trading Tuesday and is also being kicked out of the Dow. Cisco Systems (CSCO, Fortune 500) takes its place in the Dow starting Monday.

Separately, GM said that May auto sales fell 29% from a year ago, versus forecasts for a drop of nearly 37%. The May performance was the automaker's best of the year.

Auto sales: Other companies also reported narrower-than-expected sales drops.

Ford Motor (F, Fortune 500) said Tuesday that May auto sales fell 24%, versus forecasts for a drop of 28.5%. The results were the best monthly performance for the company since last July.

Chrysler - which filed for bankruptcy April 30 - said sales dropped 47% from a year ago, versus forecasts for a slide of almost 54%. It was the automaker's best monthly performance of the year.

The exception was Toyota Motor (TM), which slumped 40.7%, roughly in line with forecasts for a slide of 40.6%.

Market breadth was positive. On the New York Stock Exchange, winners beat losers three to two on volume of 1.41 billion shares. On the Nasdaq, advancers topped decliners five to four on volume of 2.42 billion shares.

Bonds: Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.61% from 3.67% Monday. Treasury prices and yields move in opposite directions.

Other markets: In global trading, Asian and European markets ended mixed.

In currency trading, the dollar fell versus the euro and yen.

U.S. light crude oil for July delivery fell 3 cents to settle at $68.55 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery rose $4.40 to settle at $984.40 an ounce. 

The Dow Jones industrial average (INDU) added a few points in the early going. The S&P 500 (SPX) index was barely changed. The Nasdaq composite (COMP) lost a few points.

U.S. stocks roared Monday after upbeat reports on manufacturing, construction spending and consumer spending added to bets that the pace of the recession is slowing.

World markets surged as well Monday. However, the momentum didn't carry over Tuesday morning, as investors shed some of the financial and tech stocks that had led the advance.

Manus Cranny, market analyst at MF Global in London, said the markets might have overextended themselves with Monday's rally.

"The fundamentals haven't quite caught up with the sentiment and the momentum in the market itself," said Cranny.

Financials: JPMorgan Chase (JPM, Fortune 500) and American Express (AXP, Fortune 500) both announced plans late Monday to sell stock, while Morgan Stanley (MS, Fortune 500) made a similar announcement Tuesday morning. They are the latest banks looking to raise money to repay government bailout funds.

The Federal Reserve is expected to announce next week which of the 19 banks that it ran so-called stress tests on will be allowed to pay back bailout funds.

Citigroup (C, Fortune 500) has decided to withhold severance payments worth tens of millions of dollars to five former executives, according to a report in the Wall Street Journal.

GM: General Motors announced the sale of its Hummer truck brand, though it wouldn't name names or price. GM said the deal would close by the end of the third quarter.

The move comes after GM (GMGMQ) filed for bankruptcy protection Monday, bringing an end to an era for the iconic automaker. The bankruptcy was hailed by President Obama, who wants a complete overhaul of the U.S. auto industry, even though GM's Chapter 11 will result in 20,000 job losses and the closure of 12 plants.

GM is now trading under the symbol GMGMQ, as of Tuesday.

Economy: A report on pending home sales in April is on tap at 10 a.m. ET. Auto and truck sales for May also are slated for release.

World markets: Asian stocks ended mixed, with Japan's Nikkei posting mild gains and Hong Kong's Hang Seng falling 2.6%. Major European markets slumped in afternoon trading.

Money and oil: The dollar slipped versus the major international currencies, including the euro, the yen and the British pound. The price of oil fell $1 to $67.58. 

NEW YORK (CNNMoney.com) -- Stocks rallied Monday, sending the Dow Jones industrial average near the breakeven point for the year, as better-than-expected readings on manufacturing activity raised hopes that a global economic recovery is brewing.

The Dow Jones industrial average (INDU) surged 221 points, or 2.6%, to close at 8,721.44 points. The bluechip average is within 55 points of breaking even for the year.

The broader S&P 500 (SPX) rose 24 points, or 2.6%, to about 943 points - its highest level of the year. The Nasdaq composite (COMP) jumped 54 points, or 3%.

The rally was broad based, with industrial and technology stocks leading the pack. Boeing (BA, Fortune 500) rose 6.5% and United Technologies Corp. (UTC) gained 5.3%. Shares of energy producers Exxon Mobil (XOM, Fortune 500) and Chevron (CVX, Fortune 500) rose as oil topped $68 a barrel.

As stocks advanced, demand for safe-haven assets evaporated. The yield on the benchmark 10-year note rose to 3.7% as its price fell sharply.

Stocks opened higher as investors looked past an official declaration of bankruptcy by General Motors, which had been widely expected. The rally gained steam after an industry report showed U.S. manufacturing activity shrank at a slower pace last month.

"Today's data were better than expected, both here and abroad," said Phil Orlando, chief equity market strategist at Federated Investors. The recession has "reached its nadir" and the improved economic outlook has helped "draw some cash off the sidelines," he said.

Wall Street rallied Friday, with the major indexes ending May in positive territory. That marked the third consecutive month that stocks have risen, though May's gains were smaller than those posted in the previous two months.

Looking ahead, automakers report monthly sales figures Tuesday. And investors are already bracing for the government's closely-watched jobs report due Friday.

Economy: The manufacturing sector contracted in May, but the pace of deterioration was slower than expected, according to an industry report.

The Institute for Supply Management said its index of national factory activity rose to 42.8 from 40.1 in April. Economists had expected the index to increase to 42, according to a survey by Briefing.com.

A reading below 50 in the index indicates the manufacturing sector is contracting. But May's gain puts the index over the tipping point that suggests expansion in the overall economy. A reading above 41.2%, over a period of time, is generally consistent with growth in gross domestic product.

Meanwhile, two separate reports showed manufacturing activity in China expanded last month. A measure of India's manufacturing sector rose to its highest level in eight months.

European manufacturing activity shrank at a slower pace in May, with a euro zone purchasing managers index marking its biggest monthly jump on record.

In the United States, construction spending unexpectedly rose 0.8% in April, its biggest increase in eight months, the Commerce Department reported. Analysts had forecast spending to fall 0.8%.

Separately, personal income rose 0.5% in April, the biggest increase in 11 months, the government reported Monday. But consumer spending dropped 0.1%.

Dow changes: Two Dow components, General Motors and Citigroup (C, Fortune 500), will be officially removed from the average June 8, Dow Jones announced Monday. Travelers Companies (TRV, Fortune 500) will take the place of Citi; Cisco Systems (CSCO, Fortune 500) will fill GM's slot on the Dow.

"I think getting some of the dogs out of the Dow is helping [to] feed the psychology," said Nick Kalivas, vice president of financial research at MF Global. But Monday's manufacturing reports were the main driver of the rally, he added.

Autos: GM (GM, Fortune 500) filed for bankruptcy protection Monday in a move aimed at helping the once-mighty automaker emerge with only its more profitable plants, brands, dealerships and contracts.

GM's stock rose 18% earlier in the session. Analysts said the rally was related to short selling, a strategy that allows investors to sell stock they don't yet own and then buy it later when the price falls. On Monday investors were buying back shares to cover their short positions, driving up the price. Shares closed 8% higher.

GM stock will begin trading on the "Pink Sheets" on Tuesday morning, said Cromwell Coulson, CEO of Pink OTC Markets Inc. Pink sheets allow for trading in certain stocks that are not listed on an exchange or the Nasdaq.

GM's bankruptcy filing occurred just hours after a U.S. Bankruptcy Court judge in New York approved Chrysler's sale of most of its assets to Italian carmaker Fiat.

Bonds: Treasury prices fell, with the yield on the benchmark 10-year note rising to 3.71% from 3.46% Friday. Bond prices and yields move in opposite directions.

Other markets: Asian stocks soared, with Japan's Nikkei adding 1.6%. European markets rallied, with shares gaining between 2% and 4%.

In currency trading, the dollar fell against the euro and the British pound. It rose against the Japanese yen.

NYMEX oil for July delivery rose by $2.27 a barrel to settle at $68.58.

COMEX gold for August delivery fell 30 cents to close at $980 an ounce. 

NEW YORK (CNNMoney.com) -- Stocks rallied Monday as investors looked past the bankruptcy of General Motor to focus on upbeat economic reports.

The Dow Jones industrial average (INDU) surged 196 points, or 2.5%, after about 45 minutes of trade. The broader S&P 500 (SPX) rose 23 points, or 2.5%. The Nasdaq composite (COMP) jumped 47 points, or 2.7%.

Two Dow components, General Motors and Citigroup (C, Fortune 500), will be officially removed from the average June 8, Dow Jones announced Monday. Travelers Companies (TRV, Fortune 500) will take the place of Citi; Cisco Systems (CSCO, Fortune 500) will fill GM's slot.

Stocks closed higher Friday, with the major indexes ending May in positive territory. That marked the third consecutive month that stocks have risen, though May's gains were smaller than those posted in the previous two months.

Economy: The manufacturing sector contracted in May, but the pace of deterioration was slower than expected, according to an industry report.

The Institute for Supply Management said its index of national factory activity rose to 42.8 from 40.1 in April. Economists had expected the index to increase to 42, according to a survey by Briefing.com.

Meanwhile, two separate reports showed manufacturing activity in China expanded last month.

Construction spending unexpectedly rose 0.8% in April, its biggest increase in eight months, the Commerce Department reported. Analysts surveyed by Briefing.com had forecast spending to fall 0.8%.

Separately, personal income rose 0.5% in April, the biggest increase in 11 months, the government reported Monday. But consumer spending dropped 0.1%.

Autos: GM (GM, Fortune 500) filed for bankruptcy protection Monday in a move aimed at helping the once-mighty automaker emerge with only its more profitable plants, brands, dealerships and contracts.

GM's bankruptcy filing occurred just hours after a U.S. Bankruptcy Court judge in New York approved Chrysler's sale of most of its assets to Italian carmaker Fiat.

Bonds: Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.59% from 3.46% Friday. Bond prices and yields move in opposite directions.

Other markets: Asian stocks soared, with Japan's Nikkei adding 1.6%. Major European markets traded in positive territory in morning trading.

In currency trading, the dollar fell against the euro and the British pound. It rose against the Japanese yen.

NYMEX oil for July delivery rose by $1.41 a barrel to $67.72.

COMEX gold for August deliver was up $390 an ounce to $984.20. 

The Dow Jones industrial average (INDU) surged 105 points, or 1.2% shortly after the opening bell. The broader S&P 500 (SPX) rose 11 points, or 1.2%. The Nasdaq composite (COMP) jumped 11 points, or 1.1%.

Two Dow components, General Motors and Citigroup (C, Fortune 500), will be officially removed from the average June 8, Dow Jones and Company announced Monday. Travelers Company (TRV, Fortune 500) will take the place of Citi and Cisco Systems (CSCO, Fortune 500) will fill GM's slot.

Stocks closed higher Friday, with the major indexes ending May in positive territory. That marked the third consecutive month that stocks have risen, though May's gains were smaller than those posted in the previous two months.

Autos: GM (GM, Fortune 500) filed for bankruptcy protection Monday in a move aimed at helping the once-mighty automaker emerge with only its more profitable plants, brands, dealerships and contracts.

GM's bankruptcy filing occurred just hours after a U.S. Bankruptcy Court judge in New York approved Chrysler's sale of most of its assets to Italian carmaker Fiat.

Economy: Personal income rose 0.5% in April, the biggest increase in 11 months, the government reported Monday. But consumer spending dropped 0.1%.

A closely watched gauge of manufacturing activity is on tap at 10 a.m. ET, as is a report on construction spending.

Bonds: Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.59% from 3.46% Friday. Bond prices and yields move in opposite directions.

Other markets: Asian stocks soared, with Japan's Nikkei adding 1.6%. Major European markets traded in positive territory in morning trading.

In currency trading, the dollar fell against the euro and the British pound. It rose against the Japanese yen.

NYMEX oil for July delivery rose by $1.04 a barrel to $67.34.  

NEW YORK (CNNMoney.com) -- Wall Street will return for the first trading day of a new month Monday with the economic outlook still unclear and the bankruptcy of a major American business icon looming large.

General Motors is expected to file Chapter 11 after its restructuring bid fell short of the government's June 1 deadline. The company's stock fell below $1 for the first time since the Great Depression on Friday.

Still, GM officially going bust may not be the big market mover of the week, since most investors have already factored it in. There's also the economy, which will likely grab the spotlight.

Economic indicators due next week include, among other things, a closely watched manufacturing index on Monday and the all-important government jobs report Friday.

At the same time, investors are nervous about growing turmoil in the bond market and a weakened U.S. dollar.

"The biggest issue facing investors now is trying to make sense of the bond market implications for the economy, as well as what's going on with the dollar," said Gary Flam, a portfolio manager at Bel Air Investment Advisors.

Last week, the yield on the 10-year Treasury note spiked to a 6-month high. The abrupt rise stirred fears that more costly borrowing, particularly mortgage rates, could derail an economic recovery.

The dollar, which fell to a 5-month low Friday, also put investors on edge. However, the greenback's decline has had a silver lining. A weaker dollar helped boost the price for crude oil some 30% in May, which has driven shares of energy producers higher.

Indeed, the rally in energy stocks was one of the main reasons why the major indexes managed to end May in positive territory as optimism about the economy faded.

May marked the first time stocks have risen for three consecutive months since October 2007. But the Dow's 3.8% advance in May was tame compared to the 30% rally on Wall Street during March and April.

Given all of the cross currents in the market, analysts say stocks are likely to remain rangebound until a significant catalyst comes along to provide direction one way or the other.

"Certainly there's money on the sidelines that could be coming into this market," said Quincy Krosby, chief investment strategist at The Hartford. "But investors want to get a clearer picture of the economy."

Monday: Before the opening bell, the government is set to release figures on April personal income and spending. A report on construction spending in April and a closely watched manufacturing index are due out shortly after trading begins.

Troubled automaker General Motors is expected to declare bankruptcy after efforts to restructure before the government's June 1 deadline fell short.

Tuesday: A report on pending home sales comes out at 10 a.m. ET. May auto sales are also on tap. Last month, overall industry sales tumbled 34%.

The technology sector will focus on the annual E3 electronic entertainment expo in Los Angeles.

Wednesday: Economic indicators are forecast to show an increase in service sector activity and a rebound in factory orders.

A report from payroll-processing firm ADP is expected to show private-sector employment shrank by 543,000 jobs in May after a decline of 491,000 jobs the month before.

Homebuilder Toll Brothers (TOLL) is expected to report a quarterly loss of 44 cents per share, according to analysts surveyed by Briefing. com. That compares with a loss of 59 cents in the same period a year ago.

At 10 a.m. ET., Federal Reserve chairman Ben Bernanke will testify before House Budget Committee on the condition of federal budget.

Thursday: Retailers report May chain store sales. The government reports on weekly jobless claims before the opening bell.

The European Central Bank will announce its decision on interest rates.

In the United States, the Federal Reserve kicks off a two day conference on financial markets and monetary policy in Washington.

Friday: The government's closely watched monthly jobs report is due before the market opens. Economists think the nation lost 550,000 jobs in may, an increase of 11,000 from the previous month total. The unemployment rate likely rose to 9.2% from 8.9%.

Another government report is expected to show consumer borrowing fell by $6 billion in May after plunging by a record $11.1 billion the month before.  

NEW YORK (CNNMoney.com) -- Stocks ended a choppy session higher Friday after a late-session rally pushed the major indexes to their biggest three-month run since 2007.

The Dow Jones industrial average (INDU) rose 97 points, or 1.1%, according to early tallies. The broader S&P 500 (SPX) gained 12 points, or 1.3%. The Nasdaq composite (COMP) advanced by 12 points, or 1.3%.

Friday's advance caps an upbeat week for Wall Street. The tech-heavy Nasdaq rose 4.6% over the last 5 trading days. The S&P 500 rose 3.4% and the Dow gained 2.5%.

For the month, the Dow jumped 3.8%, while the S&P 500 rose 5.2% and the Nasdaq advanced 3.6%. May's gains mark the first time stocks have risen for three consecutive months since October 2007.

Stocks had seesawed for most of the session but began to move higher in the last hour of trade, with blue-chip stocks like IBM (IBM, Fortune 500) and Coca Cola Inc. (KO, Fortune 500) leading advancers on the Dow.

Strong oil prices lifted energy shares, which helped prop up the broader market.

"On the upside, the market was propelled by higher oil prices lifting the energy sector," said Quincy Krosby, chief investment strategist at The Hartford. But gains were limited by "the dollar weakening and pressure in the bond market," she added.

Rising oil prices have helped lift the markets in recent days. Oil prices have jumped around 30% this month, marking the largest monthly rise since March 1999. Crude closed above $66 a barrel as the dollar fell to a 5-month low. The yield on the 10-year Treasury note slid to 3.46% as its price ticked up.

Stocks rose Thursday after a government debt auction elicited solid demand, tempering fears that borrowing costs would rise. The major gauges all added about 1%.

Meanwhile, Monday brings a new month and a new week. The old adage "sell in May and go away" may be just that...an adage. Stocks do not, in fact, always fare so poorly in the summer months that 'going away' is a good idea. (Full story)

Economy: The government said first-quarter gross domestic product fell at a revised annual rate of 5.7%, narrower than the originally reported 6.1%. Economists expected the revision to result in a 5.5% rate of decline.

A measure of business activity in the Midwest surprisingly fell in May. The ISM-Chicago Purchasing Managers Index dropped to 34.9 in May from 40.1 in April, signaling contraction. Economists had expected it to rise to 42.

Companies: After the stock market closed Thursday, Dell (DELL, Fortune 500) reported a drop in sales and earnings. The company said a slowdown in PC sales pressured its bottom line.

Before the opening bell Friday, luxury retailer Tiffany & Co. (TIF) reported first-quarter earnings of 20 cents per share, slightly lower than the 21-cent-per-share profit analysts had expected. But the jewelry maker maintained its full-year earnings forecast.

Activist investor William Ackman's quest to overhaul the board of Target (TGT, Fortune 500) fell flat at the retailer's annual shareholder meeting. None of Ackman's candidates for the board won a seat.

Shares of General Motors (GM, Fortune 500) fell below $1 for the first time since the Great Depression as the troubled automaker appeared set to enter bankruptcy despite winning key concessions from the United Auto Workers.

Bonds: Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.46% from 3.67% Thursday. Bond prices and yields move in opposite directions.

The yield on the 10-year note jumped to a 6-month high of 3.71% earlier this week, raising fears that higher borrowing costs, particularly mortgage rates, could hinder an economic recovery.

Other markets: Stocks around the world rose on the back of Wall Street's rally. In Japan, the Nikkei added nearly 1%. European markets closed higher.

In currency trading, the dollar plummeted against major international currencies. The dollar index, which measures the greenback's performance against a basket of other currencies, sank to a session low of 79.287, its lowest since mid-December.

NYMEX oil for July delivery rose $1.23 to settle at $66.31 a barrel. It was the highest closing price since Nov. 4, when crude settled at $70.53.

COMEX gold for August delivery gained $17.30 an ounce to settle at $978.80. 

NEW YORK (CNNMoney.com) -- U.S. stocks were set to rise at Friday's open, as momentum from the previous session's rally held up and oil prices rose.

At 6:45 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks climbed Thursday after a government debt auction elicited solid demand, tempering fears that borrowing costs would rise. The major gauges all added about 1%.

Economy: Trading on Wall Street has been volatile recently amid uncertainty about the economic outlook.

Reports on gross domestic product, regional manufacturing and consumer sentiment all are on tap and could influence market direction.

At 8:30 a.m. ET, the government will release figures for the gross domestic product. The preliminary GDP is expected to have fallen 5.5% in the first quarter, according to a consensus forecast from Briefing.com. In the prior quarter, the GDP dropped 6.1%.

Companies: After U.S. markets closed Thursday, Dell (DELL, Fortune 500) reported a drop in sales and earnings. The company said a slowdown in PC sales pressured its bottom line.

Activist investor William Ackman's quest to overhaul the board of Target (TGT, Fortune 500) fell flat at the retailer's annual shareholder meeting. None of Ackman's candidates for the board won a seat.

World markets: Stocks around the world rose on the back of Wall Street's rally. In Japan, the Nikkei added nearly 1%. European markets were all higher in morning trading.

Oil and money: Crude prices kept on rising, climbing above $65 a barrel, as traders bet that an economic recovery would lead to a pick up in demand. Most recently, the price of oil rose 99 cents to $66.07 a barrel. The dollar fell against major international currencies, including the yen, the euro and the British pound. 

The Treasury market worked through three major auctions this week totaling $101 billion.

The auctions were center stage as investors tried to assess whether there is enough demand to continue funding the government's massive deficit spending program. On Wednesday, yields spiked, with the benchmark 10-year rate topping 3.7%, and the surge spooked Wall Street.

There is more debt in the pipeline, contributing to falling prices and rising yields. In mid-January, the benchmark yield was hovering between 2.25% and 2.40%. In recent sessions, the benchmark yield has passed 3.7%, before easing back to 3.62% early Friday.

But with key lending rates -- including the 30-year fixed mortgage rate -- tied to the benchmark, higher Treasury yields could stifle a recovery in the housing market.

The Federal Reserve and the Obama administration have been trying to stimulate the housing market, a critical artery in the economy. The bursting of the housing market bubble was the first shoe to drop in the recession that still plagues the global economy.

The Fed has been working to buy back its own debt to stimulate demand in the market and try to keep a cap on yields. But analysts say that the $300 billion campaign is not big enough to move the multi-trillion bond market.

Rising bond yields can also be an indication of investor confidence. Investors tend to rush to the safety of government debt in times of market uncertainty.

One analyst said that the market may have gotten ahead of itself.

"The U.S. 10-year Treasury price is expected to work sideways to higher through May," said Nick Kalivas, vice president of financial research at MF Global, in a research note. "Yields are rising too fast for the pace of economic activity."

Bond prices: The benchmark 10-year note ticked down 4/32 to 95-25/32 and its yield edged up to 3.64%. Bond prices and yields move in opposite directions.

The 30-year bond eased 9/32 to 95-25/32 and its yield rose to 4.51%.

The 2-year note edged up less than 1/32 to 99-27/32 and its yield dipped to 0.97% from 0.98%. The yield on the 3-month note was unchanged at 0.14%.

Lending rates: One key bank-to-bank lending rate held at a record low. The 3-month Libor retreated back to 0.66% from 0.67% Thursday, according to Bloomberg.com.

Meanwhile, the overnight Libor rate rose to 0.27% from 0.26%.

Libor, the London Interbank Offered Rate, is a daily average of rates that 16 different banks charge each other to lend money in London. The closely watched benchmark is used to calculate adjustable-rate mortgages. More than $350 trillion in assets are tied to Libor. 

NEW YORK (CNNMoney.com) -- Stocks ended a volatile session higher Thursday as the government's most recent debt auction saw solid demand and a rise in oil prices boosted shares of energy producers.

The Dow Jones industrial average (INDU) rose 103 points, or 1.2% while the broader S&P 500 (SPX) added 14 points, or 1.5%. The Nasdaq composite (COMP) gained 1.2%, adding 20 points.

Oil prices rose above $65 a barrel. ConocoPhillips (COP, Fortune 500), Exxon Mobil (XOM, Fortune 500) and Chevron (CVX, Fortune 500) all posted gains.

Bank stocks also rose, with Goldman Sachs (GS, Fortune 500) up 3% and JPMorgan (JPM, Fortune 500) rising nearly 6%.

Stocks had seesawed for most of the session on mixed economic news. But gains accelerated later in the day after the government said it saw healthy demand for Thursday's auction of 7-year notes. That tempered some fears that a rebound of borrowing costs, particularly mortgage rates, could derail an economic recovery.

Investors mostly shrugged off an agreement between General Motors and bondholders on a debt for equity swap. The agreement does not mean the troubled automaker will avoid bankruptcy.

John Wilson, chief technical strategist at Morgan Keegan, said the market is undergoing a process of "sideways consolidation."

After climbing about 30% from the lows of early March, stocks have settled into a narrow range as investors look for more convincing signs that an economic recovery is in the works, he said.

"As this trading range narrows, the market is going to be forced to go one way or the other," he said.

Housing: New home sales in April rose 0.3% at a seasonally adjusted annual rate of 352,000 from a revised rate of 351,000 the month before, according to government figures.

Economists surveyed by Briefing.com had expected an April sales rate of 360,000, while March sales were originally reported at a 356,000 rate.

At the current rate, it would take more than 10 months to sell through the existing inventory of homes on the market, according to the report.

Separately, the number of foreclosure actions started in the first three months of 2009 rose to a record high, according to the Mortgage Bankers Association.

The National Delinquency Survey showed that more than 616,000 home owners were hit with foreclosure actions in the quarter. That's up 27% from the last three months of 2008, and the largest quarter-over-quarter increase in foreclosure starts since the MBA began keeping records in 1972.

Economy: A report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.

Initial jobless claims fell to 623,000 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.

Claims were expected to decline to 628,000, according to economists surveyed by Briefing.com.

Durable goods orders jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.

"The economic picture continues to be choppy," said Ryan Larson, senior equity trader at Voyager Asset Management. "We're in an environment where the market is dictated by headlines, and the headlines aren't very good."

Bonds: Treasury prices rose, with the yield on the benchmark 10-year Treasury note falling to 3.63% from Wednesday's 6-month high of 3.71%. Bond prices and yields move in opposite directions.

The Treasury Department said it received $58.7 billion worth of bids for the $26 billion in 7-year notes offered Thursday. That made for a bid-to-cover ratio of 2.26, reflecting relatively strong demand.

"With yields rising its making it harder for people to borrow money," Larson said. "That calls into question the government's ability to keep rates low and get credit flowing again."

Mortgage rates, which are pegged to Treasury yields, jumped in the most recent week. The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday from 5.24% last week.

Companies: Shortly after the closing bell, personal computer maker Dell (DELL, Fortune 500) reported first-quarter adjusted earnings of 24 cents per share, slightly better than the 23 cent profit analysts had expected. Still, net income fell 63% as PC sales dipped sharply.

Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) announced that it would separate itself from online service company AOL. Time Warner said AOL would be spun into a separate publicly traded company.

GM (GM, Fortune 500) shares rose after the troubled automaker said major bondholders have accepted a revised deal to swap debt for equity. However, the deal does not mean that the company will avoid filing for bankruptcy, which could happen at the end of this week if certain other restructuring efforts fail.

Other markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares ended lower with the DAX in Germany falling 1.3%.

In currency trading, the dollar was mixed against rival currencies. It fell against the euro but rose against the pound and the yen, jumping 1.5% against the Japanese currency.

NYMEX crude oil for July delivery rose $1.63 to settle at $65.08 a barrel, after climbing to a high of $65.35. The rally came after the government said U.S. crude stocks fell more than expected last week.

COMEX gold for August delivery rose $8.20 an ounce to $961.50. 

NEW YORK (CNNMoney.com) -- Stocks gave back early gains Thursday after the government reported a smaller-than-expected rise in new home sales.

The Dow Jones industrial average (INDU) was down 37 points, or 0.5%, about 30 minuets into the session. The S&P 500 (SPX) lost 4 points, or 0.5%. The Nasdaq composite (COMP) slumped 0.9%, giving back 15 points.

Stocks sold off near the close of the previous session as bond yields and mortgage rates spiked, raising concerns that higher borrowing costs could stifle an economic recovery.

Economy: New home sales in April rose 0.3% at a seasonally adjusted annual rate of 352,000 from a revised rate of 351,000 the month before, according to government figures.

But the increase was smaller than expected, and the previous month's figures were revised sharply lower. Economists surveyed by Briefing.com had expected a sales rate of 360,000. March sales were originally reported at a rate of 356,000.

Earlier, a report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.

Initial jobless claims fell to 623,00 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.

Claims were expected to have declined to 628,000, according to a consensus of economist opinion from Briefing.com.

Orders for durable goods jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.

Bonds: The yield on the benchmark 10-year Treasury note slipped to 3.64% after surging to a 6-month high of 3.71% Wednesday. Bond prices and yields move in opposite directions.

Mortgage rates, which are pegged to Treasury yields,jumped in the most recent week. The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday from 5.24% last week.

Companies: Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) announced that it would separate itself from online service company AOL. Time Warner said that AOL would be spun into a separate publicly traded company.

After the closing bell, personal computer maker Dell (DELL, Fortune 500) is expected to report first-quarter earnings of 23 cents per share, down from 38 cents per share a year ago.

GM (GM, Fortune 500) shares rose after the troubled automaker said major bondholders have accepted a revised deal to swap debt for equity. However, the deal does not mean that the company will avoid filing for bankruptcy, which could happen at the end of this week if certain other restructuring efforts fail.

Other markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.

In currency trading, the dollar rose versus the euro, but slipped against the yen and the British pound.

NYMEX crude oil for July delivery prices rose 55 cents a barrel to $64.01.

COMEX gold for August delivery rose $6.40 an ounce to $961.60. 

NEW YORK (CNNMoney.com) -- Stocks opened higher Thursday as unexpectedly strong economic data and Time Warner's plan to separate from AOL helped sooth some jitters about rising Treasury yields.

The Dow Jones industrial average (INDU) was up 72 points, or 0.8%, shortly after the opening bell. The S&P 500 (SPX) gained 8 points, or 0.9%. The Nasdaq composite (COMP) advanced 1%, adding 17 points.

Oil prices rose near $64 a barrel. The dollar jumped 1.7% against the Japanese yen but was mixed against other rival currencies.

Stocks sold off near the close of the previous session as bond yields and mortgage rates spiked, raising concerns that higher borrowing costs could stifle an economic recovery. Investors also eyed fresh signs Wednesday that General Motors (GM, Fortune 500) is headed for bankruptcy.

The yield on the benchmark 10-year Treasury note slipped to 3.64% after surging to a 6-month high of 3.71% Wednesday. Bond prices and yields move in opposite directions.

Mortgage rates, which are pegged to Treasury yields,jumped in the most recent week. The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday, up from 5.24% last week.

Economy: Two reports showed improvement in the economy. A report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.

Initial jobless claims fell to 623,00 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.

Claims were expected to have declined to 628,000, according to a consensus of economist opinion from Briefing.com.

Orders for durable goods jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.

A reading on new home sales, due after the market open, is expected to rise to an annual rate of 360,000 in April from the prior month's 356,000, according to the Briefing.com consensus.

Companies: Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) announced that it would separate itself from online service company AOL. Time Warner said that AOL would be spun into a separate publicly traded company.

After the closing bell, personal computer maker Dell (DELL, Fortune 500) is expected to report first-quarter earnings of 23 cents per share, down from 38 cents per share a year ago.

GM shares were halted Thursday after reports the troubled automaker has reached an agreement with bondholders. However, the deal does not mean that the company will avoid filing for bankruptcy, which could happen at the end of this week if certain other restructuring efforts fail.

World markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.

Money and oil: The dollar rose versus the euro, but slipped against the yen and the British pound. Oil prices rose 32 cents a barrel to $63.77 after touching a high of $63.93 earlier in the session. 

NEW YORK (CNNMoney.com) -- U.S. stocks were set to open slightly higher Thursday, as investors worried kept about rising bond yields and awaited a wave of economic reports.

At 7 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were narrowly higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks plummeted Wednesday as bond yields spiked and investors eyed fresh signs that General Motors (GM, Fortune 500) is headed for bankruptcy. The Dow and S&P both shed about 2%, while the Nasdaq lost 1%.

Peter Cardillo, chief market economist for Avalon Partners, said that high bond yields and "a fear factor of government spending, crowding out the market" could continue to haunt the stock markets Thursday.

The government has been issuing massive amounts of debt in recent weeks in an effort to stimulate the sluggish economy. Some $101 billion is being sold this week, including a $26 billion 7-year auction later Thursday.

"We're probably headed for a mixed session, unless we get a real surprise in economic data," said Cardillo.

Economy: A report on weekly jobless claims is due out at 8:30 a.m. ET, as is a reading on orders for big-ticket items.

Initial jobless claims are expected to have declined to 628,000 in the week ended May 25 from 631,000 the prior week, according to a consensus of economist opinion from Briefing.com.

Orders for durable goods are expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a decline of 0.8% the prior month.

A reading on new home sales, due after the market open, is expected to to rise to an annual rate of 360,000 in April from the prior month's 356,000, according to the Briefing.com consensus.

Companies: Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) is expected to announce the separation of online service AOL into a separate company, the Wall Street Journal reported Thursday. A spokesman for Time Warner, parent of CNNMoney.com, declined comment on the story.

World markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.

Money and oil: The dollar rose versus the yen, but slipped against the euro and the British pound. Oil prices were little changed, edging up 3 cents a barrel to $63.48. 

NEW YORK (CNNMoney.com) -- Stocks fell Wednesday, giving back gains from the previous session, after a sharp rise in Treasury yields added to jitters over a looming bankruptcy for General Motors.

The Dow Jones industrial average (INDU) fell 173 points, ending the day 2% lower. The S&P 500 (SPX) lost 17 points, or 1.9%. The Nasdaq composite (COMP) slid 1.1%, giving up 19 points.

Stocks had traded mixed for most of the session as concerns that GM will not be able to avoid bankruptcy overshadowed an encouraging housing report. But the selloff gained momentum in the afternoon as the yield on the benchmark 10-year bond jumped to a 6-month high.

Shares of energy producers fell even as the price of oil rose above $63 a barrel. Technology stocks, which had led gainers for most of the day, also ended lower.

Peter Cardillo, chief market economist at Avalon Partners, said the surge in the 10-year yield, along with other economic concerns, prompted many investors to cash in the previous session's gains.

"Today's economic news was somewhat mixed," he said. "It's an excuse to lighten up some positions after yesterday's rise."

Wall Street rallied Tuesday after an upbeat reading on consumer confidence revived some of the economic optimism that has lifted the market 30% from its lows in early March. But analysts say the market has settled into a range as investors look for more concrete evidence of economic growth.

"In general, we are at a point in the marketplace where it's going to take a big catalyst to get us moving upward again," said Art Hogan, chief market analyst at Jefferies & Co.

Bonds: Treasury prices fell, with the yield on the benchmark 10-year bond rising to 3.71% - it's highest since mid-November. It stood at 3.51% late Tuesday. Treasury prices and yields move in opposite directions.

Treasurys sold off shortly after the government said it received relatively healthy demand for Wednesday's $35 billion worth of 5-year notes.

Bill Larkin, a fixed-income analyst at Cabot Money Management, said many investors think strong demand for short-term U.S. debt suggests that there could be fewer buyers for longer-term bonds.

"There's an imbedded risk for longer-dated government-backed securities," he said. "That, along with signs of a strengthening economy, are two big negatives in bond land."

The increase also raised concerns that mortgage rates, which are tied to the 10-year yield, could head higher and stifle a recovery in the housing market.

Additionally, many analysts worry that the record amounts of debt coming to the market could overwhelm demand for Treasurys as the government expands already massive budget deficits.

Autos: GM (GM, Fortune 500) confirmed reports that bondholders rejected an offer from the company to trade $27 billion of debt for equity stakes, making it much more likely that GM will declare bankruptcy.

The company faces a June 1 deadline to win concessions from its union, creditors and other parties or be forced into bankruptcy by the U.S. Treasury Department, which is funding GM's operations. Shares fell 19%.

Chrysler LLC, which went into Chapter 11 bankruptcy late last month, will learn soon whether it can sell its best-performing assets to a newly formed version of itself, called Chrysler Group.

Economy: Sales of existing homes increased 2.9% in April to 4.86 million homes sold, up from a downwardly revised figure of 4.55 million in March, according to the National Association of Realtors.

April sales were slightly ahead of expectations. Analysts surveyed by Briefing.com had forecast a rate of 4.66 million units. But sales are still off 3.5% from the 4.85 million homes sold 12 months ago.

Wednesday's housing data followed a report issued Tuesday that showed the drop in home prices deepened during the first three months of the year.

Separately, a survey released Wednesday showed that business economists expect the recession to end this year. Almost three out of four survey respondents believe the recession will end by the third quarter of 2009, the report said.

Banks: The FDIC said that the number of banks on its so-called "problem bank" list jumped to 305 during the first three months of the year, up from 252 in the fourth quarter of last year. This is the highest number of troubled institutions since 1994.

Shares of Bank of America (BAC, Fortune 500) rose 1% after the company said it was "well on its way" towards raising the nearly $34 billion in capital that government regulators said it needs to buffer against future loan losses.

Companies: Monsanto (MON, Fortune 500), the world's largest seed company, said it expects 2009 fiscal-year results to be at the low end of its earnings forecast. The company said stronger-than-expected competition in the herbicides business prompted the warning. Shares fell 6%.

Office supplies retailer Staples (SPLS, Fortune 500) reported a one-third drop in quarterly profit to $147 million, or 20 cents per share, but still managed to beat analyst expectations. Excluding restructuring expenses, Staples reported earnings of 22 cents per share, one cent ahead of the analyst consensus estimate from Thomson Reuters. The stock fell 1.7%.

Other markets: Stocks in Asia soared, boosted by the overnight gains on Wall Street. European markets edged higher in midday trading.

In currency trading, the dollar rose against the euro and the yen. It slipped against the pound, with the U.K. currency rising above $1.60.

NYMEX oil for July delivery was rose $1 to settle at $63.45 a barrel. Saudi Oil Minister Ali al-Naimi said Wednesday that the global economy was capable of managing with oil as high as $75 to $80 a barrel, according to Reuters.

COMEX gold for August delivery closed at 953.30 an ounce, unchanged from Tuesday.