Markets Up Despite Disappointing Earnings

Despite disappointing earnings, bargain hunters lifted the markets modestly higher during the midday with the Dow rising 24 points to 8521.  Nasdaq added 5 points to 1522.

On the upside

Shares of General Motors (NYSE: GM) rose as Congress hashes out a bailout plan for the automotive industry.

Reliant Energy (NYSE: RRI) will sell its electricity supply contracts in the Northeast to Hess Corp.

Shares of Research in Motion (Nasdaq: RIMM) rose even as Barclays Capital slashed its price target from $90 to $60 for the Blackberry maker.

On the downside

Bank of America (NYSE: BAC) will increase its stake in China Construction Bank to 19.1%.  Bank of America cannot sell these shares until August 29, 2011 without the consent of China Construction.

UBS analyst Brian MacArthur downgraded Alcoa (NYSE: AA), cut his price target on the aluminum maker and trimmed earnings estimates due to lower production and weak market conditions.

Analysts from Citigroup and Bernstein Research expect Goldman Sachs (Nasdaq: GS) to post significant losses for the fourth quarter.

In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 4 on the NYSE and by 10 to 9 on Nasdaq.  The Russell 2000 which tracks small cap stocks gained 5 points to 462.