* New York sues JPMorgan over Bear Stearns mortgage products
* PetSmart to replace Sunoco in the S&P 500 index
* Indexes: Dow down 0.2 pct, S&P flat, Nasdaq 0.1 pct
By Rodrigo Campos
NEW YORK, Oct 2 U.S. stocks were flat to
slightly higher on Tuesday on bets Spain will soon ask the euro
zone for a bailout, moving the region a step closer to resolving
its three-year-old debt crisis.
Major averages were only marginally higher, however, as the
equity market has been unable to sustain a rally in recent days.
If Madrid were to seek a rescue, it would trigger European
Central Bank buying of its bonds and help to ease U.S.
investors' nervousness about the euro zone's impact on the U.S.
"I think the market feels that we are closer to some type
of action and resolution in terms of the Spanish problem," said
Paul Mendelsohn, chief investment strategist at Windham
Financial Services in Charlotte, Vermont. "That's certainly
helping markets this morning."
The Dow Jones industrial average slipped 20.69
points, or 0.15 percent, to 13,494.42. The Standard & Poor's 500
Index gained 0.61 point, or 0.04 percent, to 1,445.10.
The Nasdaq Composite Index added 3.00 points, or 0.10
percent, to 3,116.53.
In spite of Spain's apparent readiness to ask for help,
Germany has signaled that Madrid should hold off on making its
request, according to European officials on Monday.
JPMorgan Chase & Co was sued by New York's attorney
general on Monday in the first action to come out of a working
group created by President Barack Obama to go after wrongdoing
that led to the financial crisis. The civil fraud lawsuit
centered on mortgage-backed securities packaged and sold by Bear
Stearns, which JP Morgan acquired.
JPMorgan shares edged down 0.8 percent to $40.65.
Chrysler said September vehicle sales were up 12 percent
from a year earlier and the highest for the month since 2007.
Shares of majority stakeholder Fiat rose 1.2 percent
PetSmart Inc shares added 2.4 percent to $69.15
after S&P Dow Jones Indices said after Monday's close the
company will replace Sunoco in the S&P 500 on Oct. 4.
Shares of Express Inc fell 17.5 percent to $12.39
after the apparel retailer revised its third-quarter outlook.
Shares of ArQule Inc tumbled 57 percent to $2.14
after the biotechnology company and Japan's Daiichi Sankyo
said they will end a late-stage trial of their
experimental lung cancer drug.