US midday: Investors keep eye on crude
US stocks have moved up slightly now, retracing earlier losses, as investors keep an eye on record crude prices.
Crude oil climbed past $122 a barrel as investors fretted about supply and the weak US dollar.
Across the markets, the Dow Jones is up 18 points to 12,988 while the Nasdaq is ahead by 13 points to 2477. The S&P 500 is up 7 points to 1414.
Federal National Mortgage Association, colloquially known as Fannie Mae, is to raise another $6bn in capital and slash its dividend after huge write-downs plunged it into the red in the first quarter.
The largest buyer of US home loans reported a first quarter net loss of $2.19bn, down from a net profit of $961m a year earlier, as it took a $4.4bn hit on losses on derivatives and trading securities plus a $3.2bn charge for credit-related expenses.
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Sara Lee is the biggest faller among blue-chips after the food producer said annual profit this year will be lower than previously indicated.
Countrywide Financial is another big faller despite a report in the Wall Street Journal claiming that Bank of America is still committed to its proposed takeover of the mortgage lender.
Legg Mason is the latest to suffer from the fall-out from the sub-prime crisis. The asset manager lost $255m in the fourth quarter of its financial year after bailing out money-market funds hurt by investments in debt backed by sub-prime mortgages.
Cosmetics company Estee Lauder is smelling of roses, however, after lifting its full-year profit forecast from earnings per share in the range of $2.28 - $2.40 to a range of $2.34 - $2.40.
Brewer Molson Coors saw net income surge ahead for the first quarter thanks to strong performance in Canada and the US.
