Markets Rebound

The markets rebounded during the midday with the Dow gaining 57 points to 8027 as investors brushed aside Morgan Stanley's disappointing loss. Nasdaq climbed 28 points to 1672.

On the upside

Temple-Inland (NYSE: TIN) reversed year ago losses to post a profit that beat expectations by a wide margin.

AirTran Holdings (NYSE: AAI) reported a better than expected first quarter profit even as revenue slipped.

Goldman Sachs analyst Patrick Archambault upgraded Ford (NYSE: F).

On the downside

Although Pharmaceutical Produce Development (Nasdaq: PPDI) reported higher first quarter earnings, revenue fell and the contract drug research company cut its full year guidance.

Plains Exploration & Production (NYSE: PXP) increased its public offering of common shares by 2 million to 12 million.

Analysts downgraded KeyCorp (NYSE: KEY) after the regional bank swung to a first quarter loss.

In the broad market, advancing issues outpaced decliners by a margin of nearly 5 to 2 on the NYSE and by nearly 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks climbed 9 points to 479.