Dow caps longest advance since June as Hewlett-Packard climbs

Investors moved to the sidelines on Wednesday awaiting a possible action by the Federal Reserve to support the economy.

The Dow Jones Industrial Average gained 7.04 points to 13,175.64, the fourth consecutive gain. The Nasdaq Composite Index fell 4.61 points to 3,011.25, and the S&P 500 Stock Index was little changed at 1,402.22.

The markets rebounded from early losses after two separate reports showed real estate prices rose by 2.5 percent in June compared to the same period a year ago and foreclosure activity fell in the second quarter to the lowest level since 2007.

Gold rose $3.20 to $1,616 an ounce, and oil slipped 32 cents to $93.35 a barrel.

Hewlett-Packard Co. (NYSE: HPQ) increased 2.4 percent after raising its profit forecast and appointing a new head for its enterprise services unit as it restructures the business. Dean Foods Co. (NYSE: DF) surged 41 percent as its WhiteWave unit filed to raise $300 million in a U.S. initial public offering. McDonald’s Corp. (NYSE: MCD) slid 1.7 percent amid unchanged July global sales. Priceline.com Inc. (Nasdaq: PCLN) tumbled 17 percent on a disappointing earnings projection.

Benchmark gauges fell after Federal Reserve Bank of Dallas President Richard Fisher said adequate economic stimulus already is in place and that global central banks may not have the capacity to undertake additional measures to boost growth. Stocks rose Tuesday as Fed Bank of Boston President Eric Rosengren said the central bank should pursue an “open-ended” easing program of “substantial magnitude.”

“Stimulus can’t hurt, but the problem is that it has less and less effect,” said Madelynn Matlock, who helps oversee about $14.7 billion at Huntington Asset Advisors in Cincinnati. “Any argument by policymakers is going to pull the market in various directions, depending on what they are saying.”

Macy’s Inc. (NYSE: M) rose 2.7 percent to $38.01. The company reported second-quarter profit that beat estimates, helped by its credit cards.

Walt Disney Co. (NYSE: DIS) gained 1.4 percent to $50.49. The entertainment company posted better than expected third-quarter profit buoyed by the film hit “Marvel’s The Avengers.” Revenue fell short of analysts’ estimates.

Computer Sciences Corp. (NYSE: CSC) gained 16 percent to $29.53. The technology contractor reported profit and revenue that topped estimates as its new chief executive officer works on turning the company around.

Express Scripts Holding Co. (Nasdaq: ESRX) added 8.4 percent to $60.73. The processor of drug prescriptions raised its annual profit forecast as gross margins improved following its April acquisition of Medco Health Solutions Inc.

MEMC Electronic Materials Inc. (NYSE: WFR) soared 11 percent to $2.28. The polysilicon maker jumped after second-quarter sales of solar projects boosted its cash flow.

Bloomin’ Brands Inc. soared 13 percent to $12.41. The owner of the Outback Steakhouse restaurant chain rallied after raising $176 million in its U.S. IPO, pricing a reduced number of shares below the proposed range.

Knight Capital Group Inc. (NYSE: KCG) climbed 3.3 percent to $3.16 after tumbling 24 percent over the previous two days. Chief Executive Officer Thomas Joyce estimated last week’s trading loss will be $270 million after taxes and told clients the firm is “in good standing” with clearinghouses.