The markets closed modestly higher with the Dow adding 3 points to 15,464 as upbeat earnings tempered disappointment over a drop in consumer sentiment. Nasdaq climbed 21 points to 3600.

On the upside

Bloomberg reported that Roche may acquire Alexion Pharmaceuticals(Nasdaq: ALXN). 

Seeking Alpha wrote that Rockwell Medical (Nasdaq: RMTI) was undervalued. 

Bargain hunters lifted shares of RadioShack (NYSE: RSH).

On the downside

Fly Leasing (NYSE: FLY) extended its losses.

Profit taking sank shares of Lee Enterprises (NYSE: LEE).

June box office receipts for RealD (Nasdaq: RLD) enabled movie screens fell sequentially.   

In the broad market, declining issues barely edged out advancers by a slim margin on the NYSE while advancers outpaced decliners by nearly 5 to 4 on Nasdaq. The broader S&P 500 index rose 5 points to 1680.