Markets Fall After Opening Slightly Higher

August 27, 2008 10:07 a.m. EST

New York, NY (AHN) - Wall Street is down 30 points after opening slightly higher Wednesday as traders mull news of higher-than-expected durable goods orders and rising tension over threatened Gulf of Mexico oil installations.

The Dow Jones Industrial Average was down 30 points to 11,382 after advancing 2 points in earlier trading. Tuesday, the big board closed up 26 points.

The broader Standard and Poor's 500 was off nearly one point at 1,270 as the Commerce Department reported orders for durable goods in July rose 1.3 percent, beating expectations of a tepid 0.2 percent rise. Demand for transportation equipment led the increased orders, the government said.

The tech-heavy Nasdaq Composite was down morethan 2 points at 2,359. Tuesday, the index fell 3 points.

Crude oil is up $2.93 at $119.20 a barrel as investors consider the potential impact of Tropical Storm Gustav of Gulf of Mexico oil operations and the upcoming oil inventory report.

In a related development, ConocoPhilips followed other energy companies, selling the remaining gas stations it owned to PetroSun West LLC for $800 million.

The government also said the Federal Deposit Insurance Corp. may need to borrow money to deal with a 30 percent rise in troublesome banks, the Wall Street Journal reported Wednesday.

Drugmaker Eli Lilly and Amyline Pharmaceuticals reported four new deaths from their diabetes medication Byetta. Last week, the FDA recommended the drug be pulled from the market after reports two deaths and pancreatic damage.

Elsewhere, AMR, the parent of American Airlines fell after Citi downgraded the stock.