U.S. stocks rose slightly, led by health care shares such as Cardinal Health, as investors sought companies that may be less affected by the rising cost of energy and a slowing economy.
Higher prices for crude oil and a disappointing profit forecast from LSI Logic, a maker of computer chips for DVD players, helped limit the advance.
"It seems that the market is trying to make a stand and go up" against concerns about slower economic growth, said Stanley Nabi, vice chairman of Silvercrest Asset Management, which oversees $4.8 billion in New York.
The Standard & Poor's 500-stock index advanced 2.51, or 0.2 percent, to 1128.33. The Dow Jones industrial average rose 3.40, or 0.03 percent, to 10,318.16. The Nasdaq composite index gained 5.02, or 0.3 percent, to 1915.40.
Cardinal Health, the U.S. drug distributor being investigated by federal regulators, rallied $2, to $47.49. The company said it would restate at least three years of results and delayed its fiscal fourth-quarter report. The effect of the restatement will be minimal, said Kevin Berg, an analyst with Credit Suisse First Boston in New York.
Schering-Plough, maker of Claritin allergy pills, gained 37 cents, to $19.47.
LSI Logic lost 50 cents, or 9.5 percent, to $4.75, for the steepest drop in the S&P 500. Allied Waste Industries slumped 94 cents, or 9.2 percent, to $9.30, for the second-biggest decline in the benchmark. The company cut its profit forecast for the second time in two months.
Kroger, the largest U.S. grocer, dropped 72 cents, to $15.98. Second-quarter profit trailed analysts' estimates as the company trimmed prices to compete with discount stores. Office Depot, the world's No. 2 office-supplies retailer, slumped $1.10, to $15.10. The company said earnings for the third quarter will be below estimates because of hurricanes in Florida and sluggish back-to-school sales.
* The New York Stock Exchange composite index rose 12.40, to 6594.21; the American Stock Exchange index rose 2.36, to 1248.54; and the Russell 2000 index of smaller-company stocks fell 2.14, to 570.96.
* Declining issues narrowly outnumbered advancing ones on the NYSE, where trading volume fell to 1.2 billion shares, from 1.29 billion on Monday. On the Nasdaq Stock Market, decliners outnumbered advancers by 8 to 7 and volume totaled 1.48 billion, down from 1.72 billion.
* The price of the Treasury's 10-year note rose $1.56 per $1,000 invested, and its yield fell to 4.13 percent, from 4.15 percent on Monday.
* The dollar fell against the Japanese yen and rose against the euro. In late New York trading, a dollar bought 109.57 yen, down from 110.12 late Monday, and a euro bought $1.2258, down from $1.2259.
* Light, sweet crude oil for October delivery settled at $44.39, up 52 cents, on the New York Mercantile Exchange.
* Gold for current delivery rose to $405.70 a troy ounce, from $404.10 on Monday, on the New York Mercantile Exchange's Commodity Exchange.