MARKET SNAPSHOT: U.S. Stocks Turn Mostly Higher As Financials Come Off Lows

By Nick Godt

U.S. stocks turned mostly higher Thursday, after an analyst upgrade of Lehman Brothers helped offset fresh concerns over the investment firm, and nervousness about the fate of mortgage giants Fannie Mae and Freddie Mac.

The Dow Jones Industrial Average (DJI) was up 22 points, or 0.1%, to 11,437, with 17 of its 30 components trading higher.

"Right now, there's optimism that the government is going to make an announcement, which would make room for a little relief rally," said Alec Young, market analyst at Standard & Poor's.

Jitters about the credit crisis have returned to haunt the market this week amid concerns about distress at Fannie Mae (FNM) and Freddie Mac (FRE), and nervousness about whether the government may bail them out.

"It would help stocks in the short term even if it doesn't solve the major underlying problem, which remains 11 months worth of homes unsold in this country," Young said. "But you do need Fannie and Freddie to operate and buy those loans to work through these inventories."

A surge in crude-oil prices also lifted the energy sector, providing some support for the major stock indexes while keeping some consumer-related stocks under pressure.

LATIN AMERICAN MARKETS: Commodity-price Surge Aids Brazil; Mexican Shares Struggle

By Carla Mozee

Brazilian shares gained ground Thursday, although advances in resource shares were met with some resistance throughout the market. Meanwhile, Mexican equities fell, with results from a key survey that showed the U.S. economy will see slow growth through the next year.

Brazil's Bovespa rose 0.5% to 55,558.06, with energy and steel stocks the only sectors to post gains. The benchmark index surged 3.2% on Wednesday.

Petroleo Brasileiro (PBR) was among the top percentage gainer, up 3.6% as oil briefly hit above $122 a barrel, its highest level in more than two weeks. Its preferred and common shares make up 17% of the index.

Crude prices were lifted by a decline in the dollar, and as tensions between the U.S. and Russia escalated after the U.S. agreed to construct a missile- defense system in Poland.

Steel stocks extended strong advances from the previous session, with Gerdau ( GGB) up 2.7%, CSN (SID) higher by 1.4%, and iron-ore giant Companhia Vale do Rio Doce (RIO) up 2.4%.

The Reuters/Jefferies CRB Index (CRB), a measure of major commodity futures, rose 3.4%.