Stocks Open Higher as Chrysler Negotiation Breaks Down

Negotiations with hedge funds crumbled overnight in a last-minute effort to stave off a bankruptcy filing by Chrysler. Meanwhile, investors mulled over the latest economic reports in hopes of finding more signs of an economic recovery. The Dow rose 89 points to 8275 while Nasdaq surged 30 points to 1742.

On the upside

Dow Chemical (NYSE: DOW) reported lower revenues and a meager profit, but the results beat expectations of a quarterly loss.

Ashland (NYSE: ASH) posted lower revenues and profits, but the chemical company beat estimates.

MGM Mirage (NYSE: MGM), Dubai World and their lenders have struck a deal to finish a $8.5 billion Las Vegas Strip development.

On the downside

Exxon Mobil (NYSE: XOM) posted a sharp drop in profits to miss analysts' targets. Lower oil prices were blamed for the shortfall.

Shares of Sequenom (Nasdaq: SQNM) tumbled after the company delayed the launch of its Down syndrome test.

LoJack (Nasdaq: LOJN) posted a quarterly loss and suspended its outlook due to the uncertainty in the automotive industry.

In the broad market, advancing issues outpaced decliners by a margin of more than 3 to 1 on both the NYSE and Nasdaq. The Russell 2000 which tracks small cap stocks rose 6 points to 497.