New York – Stocks fell slightly but showed more signs of stability Wednesday as investors sifted through new economic data and found little reason to resume last week’s heavy selling pace.
The stock indexes wavered in a narrow range, reacting little to comments from Chicago Fed President Michael Moskow that inflation remains stubborn and that interest-rate increases might be needed to contain costs. The stock market was similarly unimpressed by data showing a weaker jobs picture and sluggishness in some areas of the country.
Investors in the past week have harbored concerns about a global economic slowdown and have been looking at data to try to determine whether the U.S. economy is still capable of pulling off a soft landing.
In late trading, stocks turned lower after drifting higher for most of the afternoon, unable to build on the rally of a day earlier. Tuesday’s advance was strong – the Dow Jones industrials made up about 26 percent of the losses they suffered in the previous week – but it left investors wondering whether renewed volatility would subside long enough to allow Wall Street to build some consensus about where stocks were headed.
Overall, though, Wednesday’s trading was reassuring. Volume levels were more typical of everyday trading than the big numbers Wall Street posted for much of the past week.
“The market is stabilizing after the storm of last week. That’s real progress. It’s extremely welcome. It allows us to restore investor confidence,” said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors.
The Dow Jones industrial average fell 15.14, or 0.12 percent, to 12,192.45. Broader stock indicators also edged lower. The Standard & Poor’s 500 index fell 3.44, or 0.25 percent, to 1,391.97, and the Nasdaq composite index declined 10.50, or 0.44 percent, to 2,374.64.
