April durable goods orders fell by a more modest than expected amount lifting the markets to a higher close with the Dow climbing 46 points to 12,594. Nasdaq gained 5 points to 2487.

On the upside

Soaring coal prices lifted shares of Alpha Natural Resources (NYSE: ANR).

Although disappointing sales weighed down first quarter earnings for American Eagle Outfitters (NYSE: AEO), the results surpassed expectations.

Bank of America (NYSE: BAC) announced that Countrywide's (NYSE: CFC) president and COO David Sambol will retire instead of running the combined company's consumer real estate business. Bank of America's chief technology and operations officer Barbara Desoer will head the combined consumer real estate division.

On the downside

Ambac Financial (NYSE: ABK) reported $176 million in write-downs for credit derivatives holdings in April.

Citi Investment Research analyst Keith Howard said that Regions Financial (NYSE: RF) must raise more capital as the credit crisis continues.

While Introgen Therapeutics (Nasdaq: INGN) announced that its cancer treatment Advexin met the goals of a late stage clinical trial, the drug failed to improve survival rates for certain patients.

In the broad market, advancing issues outpaced decliners by a margin of more than 9 to 7 on the NYSE and by nearly 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks rose 4 points to 738.