Opening Bell Report

The markets opened higher as consumer confidence and new home sales rose in July.  The Dow added 33 points to 11,419 while Nasdaq rose 8 points to 2373.

On the upside

Shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) rallied for a 2nd consecutive day on hopes that the mortgage companies can ride out the troubled housing market by tapping debt rather than a government bailout.

Daktronics (NasdaqL DAKT) posted higher 1st quarter profits citing strong demand for its large screen video displays.

Trading under $1 a share, mortgage lender Thornburg Mortgage (NYSE: TMA) reported sharply higher 2nd quarter profits due to one-time gains from the sale of assets.

On the downside

Close-out retailer Big Lots (NYSE: BIG) posted better than expected results and raised its outlook for the year.  However, investors took profits on the stock which had been trading near 52-week highs.

Chicken producer Sanderson Farms (Nasdaq: SAFM) reported a 3rd quarter loss as higher feed prices cut into profit margins.

Darden Restaurants (NYSE: DRI) blamed the economy for lower same-store sales at its Red Lobster, Olive Garden and LongHorn Steakhouse locations.

In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by nearly 2 to 1 on Nasdaq.  The Russell 2000 which tracks small cap stocks added 5 points to 725.