Mid-Day Report

Modest gains in personal income and consumer spending lifted the markets during the midday with the Dow gaining 11 points to 12,657.  Nasdaq climbed 14 points to 2522.

On the upside

Privately held Catalina Holdings offered to acquire Quanta Capital Holdings (Nasdaq: QNTA) in a cash deal valued at approximately $197 million.

Stifel Nicolaus initiated coverage of Petrohawk Energy (NYSE: HK) with a Buy rating.

Wet Seal (Nasdaq: WTSLA) reported higher first quarter earnings that beat estimates due to lower expenses.  The apparel retailer forecast second quarter results ahead of expectations prompting an upgrade.

On the downside

J. P. Morgan analyst Jeffrey J. Zekauskas downgraded Ashland (NYSE: ASH) saying that climbing commodity prices and easing demand will affect earnings.

Moody's Investors Service downgraded CIT Group's (NYSE: CIT) senior unsecured rating due to difficult market conditions.

Fourth quarter earnings for Medical Action Industries (Nasdaq: MDCI) slipped to fall short of estimates as costs rose.

In the broad market, advancing issues outpaced decliners by a narrow margin on the NYSE while deliners barely edged out advancers by a slim margin on Nasdaq.  The Russell 2000 which tracks small cap stocks slipped a fraction to 745.