Market diary.

U.S. stocks rallied around positive corporate news and all major indices increased a small amount in the week ended Aug. 2, despite the fact there continues to be some confusion about whether the Federal Reserve will raise interest rates this week. (Merrill Lynch is predicting a 36 percent chance of a rate hike,) The Dow Jones Industrial Average rose 0.9 percent to 11,1199.90, while the Standard & Poor's 500 Index rose 0.8 percent to 1,278.55. The Nasdaq Composite Index was up 0.4 percent to 2,078.81 while the LABJ 200 Index nudged up 0.6 percent to 131.43. Declines outpaced advances 102 to 88, with 10 issues unchanged. Locally, 13 stocks hit new lows and six reached new highs. Automotive stocks suffered the biggest loss falling 7 percent. Keystone Automotive dragged down the sector on weaker-than-expected earnings. Its shares fell $6.68, or 16 percent, to $35.06. Shares of retailer Hot Topic Inc. fell 15 percent, or $2.15, to $11.60 on a gloomy sales outlook. Online marketing firm ValueClick Inc. launched itself onto the most active stock list with a 23 percent jump in shares to $17.33 on strong second-quarter earnings and a higher revenue outlook. Ameron International Corp. share rose 7.3 percent to $58.87 after completing the sale of its performance coatings business.