Leading Economic Index Rises, Markets Advance

The markets advanced during the midday with the Dow climbing 51 points to 9330 after the Conference Board reported an increase in its Leading Economic Index. Nasdaq gained 15 points to 1984.

On the upside

Gymboree (Nasdaq: GYMB) impressed with second quarter earnings that surged to top estimates due to higher sales and a lower than expected tax rate.

Freddie Mac (NYSE: FRE) said that mortgage rates fell to their lowest level in four months.

Taiyangshan Development Zone selected ReneSola (NYSE: SOL) to build a $706 million, 150 megawatt solar power plant.

On the downside

AVI BioPharma (Nasdaq: AVII) priced its offering of 21.1 million common shares and warrants to purchase up to 8.4 million shares at $1.42 per unit.

Sterling Financial (Nasdaq: STSA) announced that it will defer interest payments on junior subordinated notes and will also defer payments of regular quarterly dividends for its preferred stock.

Citi Trends (Nasdaq: CTRN) swung to a loss as sales dropped.

In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by more than 9 to 7 on Nasdaq. The Russell 2000 which tracks small cap stocks added 3 points to 565.