Stocks edge higher after mixed economic reports

NEW YORK (AP) — The stock market rose slightly in afternoon trading today after two key reports gave a mixed picture of the U.S. economy.

One showed that home prices in July rose the most in more than seven years. Another showed that Americans' confidence in the economy fell slightly in September as many people became less optimistic about hiring and pay increases.

The modest gains in stocks, if they hold, would end a three-day losing streak that followed a record high last week.

Investors are searching for direction after the Federal Reserve's surprise decision last Wednesday to keep its stimulus program intact. They had expected a reduction in the Fed's $85 billion in monthly bond purchases. Traders are now parsing economic reports and comments from Fed officials to gauge the central bank's next move.

Investors also are trying to figure out the political gridlock in Washington. They are concerned that the federal government could shut down because Washington lawmakers appear to be making little progress in budget talks.