Markets Up As Service Sector Activity Rises

An unexpected gain in service sector activity lifted the markets higher during the midday with the Dow climbing 75 points to 9027. Nasdaq soared 27 points to 1655.

On the upside

Wachovia upgraded YRC Worldwide (Nasdaq: YRCW).

ArvinMeritor (NYSE: ARM) will cut the salaries of its top executives by 10% due to the ailing economy.

Shares of Allied Capital (NYSE: ALD) continued rising after a revised credit agreement prompted Stifel Nicolaus analyst Greg Mason to upgrade the company.

On the downside

Logitech International (Nasdaq: LOGI) withdrew its sales targets for fiscal 2009 and will reduce its work force by approximately 15% as part of a restructuring plan.

Laboratory Corporation of America Holdings (NYSE: LH) blamed the sluggish economy for lowering its outlook for 2009.

LDK Solar (NYSE: LDK) cut its revenue guidance for the fourth quarter due to delayed customer shipments.

In the broad market, advancing issues outpaced decliners by a margin of more than 5 to 2 on the NYSE and nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks rose 6 points to 511.