Stock Dip on the Day

The Dow Jones Industrial Average finished the day down a point at 11103. The Nasdaq lost 3 to fall to 2070, and the S&P 500 had dropped fractionally to 1268.

Investors began the day timid after mixed earnings from techs and blue chips, but a small rally in oil pushed equities slightly higher by midday.

At 2 p.m., the Fed's Beige Book report, a survey of economic conditions around the country, suggested that the expansion is generally slowing and that inflation is in check. Consumer spending and real estate activity declined. Manufacturing continued to grow. Investors appeared to cheer the report, taking it as a sign that the Federal Reserve would end its protracted campaign of hikes to the federal funds rate at its next meeting Aug. 8.

In equities, technology stocks were in play throughout the day, with several large-cap companies releasing earnings or announcing deals.

Amazon (AMZN), the world's largest online retailer, disappointed analysts and investors late Tuesday. Sales incentives like discounts and free shipping drove revenues 22% higher than the year-ago period, but the costs of those sales motivators proved too great, and net income dropped 58%, causing the company to miss analysts' estimates.

Sun Microsystems, (SUNW) the computer maker based in Santa Clara, Calif., also posted a disappointing loss after Tuesday's close, but the company said one-time charges related to staff reductions hurt the bottom line. Revenues rose to $3.83 billion, about 6% above expectations.

In a bid to become a larger player in business software, Hewlett-Packard (HPQ) announced it would acquire the Israeli software company Mercury Interactive for $4.5 billion. (Mercury makes software products with names like, "IT Governance Dashboard" and "Business Process Monitor.") For HP, the deal represents the first major acquisition under CEO Michael Hurd.

In the auto sector, General Motors (GM) reported another hefty loss on Wednesday morning. Like Sun, the company posted higher revenues but is struggling to absorb costs related to personnel cutbacks. GM lost $3.18 billion on the quarter.

Honda (HMC) had an arguably better quarter, posting profit growth of 30%. As gasoline prices continued to soar in the U.S., demand for Honda's economical vehicles grew.

In Big Pharma, GlaxoSmithKline (GSK) posted a 14% gain in earnings and nudged its annual guidance up a bit.

Shares of Boeing (BA) were down early after the company posted its first loss in three years.

In energy, ConocoPhillips (COP) benefited from surging oil prices. The company earned $3.19 a share on the quarter, blowing past analysts' expectations of $2.81 a share.

The oil rally that characterized the morning dried up later in the afternoon. At $73.95, light crude had gained only a penny on the day.

In the bond market, the 10-year Treasury yield dropped to 5.04%.