Stocks ended in a stalemate Tuesday as enthusiasm for an upbeat manufacturing report and a $44 billion acquisition by Warren Buffett was tempered by weak semiconductor stocks.

Today’s Markets

The Dow Jones Industrial Average sank 17.53 points, or 0.18%, to 9771.91, the S&P 500 rose 2.53 points, or 0.24%, to 1045.41 and the Nasdaq Composite picked up 8.12 points, or 0.40%, to 2057.32. The consumer-friendly FOX 50 dropped 3.04 points, or 0.40%, to 765.03.

While it was a mixed day on Wall Street, the markets closed well off their worst levels of the day as an early 86-point decline on the Dow was mostly erased. 

“The market is in a little bit of quicksand here. We just seem to be on the negative side of the equation,” NYSE trader Ted Weisberg of Seaport Securities told FOX Business. “They continue to look kind of tired to me.”

The Dow was led lower by Merck (MRK) and Intel (INTC), which was reeling from an analyst downgrade of the semiconductor sector. On the other hand, Alcoa (AA) and Caterpillar (CAT) were the index's biggest percentage gainers. 

Wall Street struggled to rally around Buffett's $44 billion deal to buy the rest of railroader Burlington Northern Sante Fe (BNI) that his Berkshire Hathaway (BRK) holding company doesn’t already own. The deal, Buffett’s largest ever, is worth $100 a share, a 31% premium to the company’s closing price Monday. Buffett said the move represents a “huge bet” on BNI, its management team and the railroad industry. “Most important of all, however, it's an all-in wager on the economic future of the United States." 

The BNI acquisition helped lift other railroaders like Union Pacific (UNP) and CSX (CSX), sending the transportation sector up more than 5%. Tuesday's M&A news comes a day after Stanley Works (SWK) announced a $3.46 billion transaction to buy rival Black & Decker (BDK). 

The markets received another better-than-expected economic report on Tuesday as the Commerce Department said factory orders jumped 0.9% in September, beating expectations for a 0.8% rise. The government also upwardly revised its durable goods orders estimate to reflect a rise of 1.4%, up from 1% earlier.

The energy and basic materials sectors helped boost the markets as commodities rallied in the face of a sharply stronger U.S. dollar. Individual stocks like U.S. Steel (X) and Massey Energy (MEE) saw even heavier buying. Crude gained $1.47 a barrel, or 1.88%, to $79.60. Gold jumped $30.90 an ounce, or 2.93%, to $1084.30 -- a new record closing high.

Tech stocks like Broadcom (BRCM) and Nvidia (NVDA) helped limit the gains on Tuesday after Morgan Stanley downgraded the semiconductor sector to “cautious” from “attractive” and cut Intel to “equal weight” amid worries about rising inventories and the PC industry. 

The U.S. auto sector was also in focus as Ford (F) said its sales unexpectedly rose 3% last month and its market share climbed to more than 15%. General Motors said its October sales rose 15%, its first annual sales gain since Jan. 2008.

Meanwhile, the Federal Open Market Committee's two-day policy meeting began on Tuesday. Although no change in interest rates are expected, the markets will be dissecting the central bank's policy statement Wednesday afternoon for hints about when the Federal Reserve will boost rates in the future.

Corporate Movers

MasterCard (MA) beat the Street with non-GAAP EPS of $3.48 per share, compared to analysts’ projections for $2.94. The world’s second-largest credit card network’s revenue rose 2% to $1.4 billion, topping estimates for $1.35 billion.

Viacom (VIA) posted a 15% jump in net income, which translated to better-than-expected EPS of 69 cents a share on an adjusted basis. The parent of MTV and Comedy Central said its revenue fell 3% to $3.32 billion, compared to projections for $3.3 billion.

DuPont (DD) reiterated its fiscal 2009 outlook and expects that it will generate 10% annual revenue growth between 2009 and 2012 and 20% earnings growth through the same period. The chemical company sees EPS of $2.10 to $2.40 for fiscal 2010, compared to consensus estimates for $2.24.

Polo Ralph Lauren (RL) reported a stronger-than-expected 10.2% increase in fiscal second-quarter net income. The company’s revenue fell 4% to $1.4 billion, beating analysts’ projections for $1.31 billion. Ralph Lauren upped its fiscal 2010 net revenue guidance, now projecting a decline in the mid single digits.

Medco Health Solutions (MHS) exceeded Wall Street’s expectations with a non-GAAP profit of 75 cents per share. The largest U.S. pharmacy-benefits manager said its revenue climbed 18% to $14.8 billion, narrowly topping estimates. Medco also upgraded its 2009 non-GAAP EPS guidance to a range of $2.80 to $2.82, compared to consensus estimates for $2.80 per share.

Diebold (DBD) posted a worse-than-expected adjusted-profit of 39 cents a share during the third quarter. The maker of ATM machines said its revenue slid 26% to $645.2 million, also missing estimates. Diebold also narrowed its 2009 EPS guidance to $1.75 to $1.80, compared to the Street’s view of $1.80.

Global Markets

European markets tumbled. London's FTSE 100 sank 1.78% to 5013.64, Paris' CAC 40 was down 1.79% to 3574.20 and Frankfurt, Germany's DAX lost 1.41% to 5354.10.

In Asia, Japan's Nikkei 225 dropped 2.31% to 9802.95 and Hong Kong's Hang Seng fell 1.76% to 21240.06 but China's Shanghai Composite rose 1.22% to 3114.23.