NEW YORK – Stocks moved sideways today as investors tried to determine whether the previous session’s rally had legs and would continue or whether the pessimism that pressed investors into selling for much of the past week would win out.
While Tuesday’s advance was impressive – the Dow Jones industrials made up about 26 percent of the losses they suffered in the previous week – investors were left trying to determine whether recent volatility that had been absent the markets in recent months would subside long enough to allow Wall Street to build some consensus about where stocks were headed.
Overseas markets, which have influenced U.S. trading over the past week, were mixed, which contributed to Wall Street’s uncertain start. Investors awaited economic data due later in the day, including the Federal Reserve’s assessment of regional economic conditions.
Investors in the past week have harbored concerns about a global economic slowdown and have looked to economic data as they try to determine whether the economy is still capable of pulling off a soft landing and showing slower yet sustainable growth.
“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.
In late morning trading, the Dow Jones industrial average fell 20.75, 0.17 percent, to 12,186.84.
Broader stock indicators fell slightly. The Standard & Poor’s 500 index fell 4.27, or 0.31 percent, to 1,391.14, and the Nasdaq composite index rose 11.72, or 0.49 percent, to 2,373.42.
Bonds investors made small bets as they tried to gather a further reading on the economy. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.51 percent from 4.53 percent from late Tuesday. The dollar mixed against other major currencies, while gold prices rose.
While much of the day’s economic news is due later in the session, investors received some word on employment. The ADP National Employment Report found private sector employment rose by 57,000 jobs in February, the weakest reading since July 2003. The findings arrived before Labor Department’s employment report, which is due Friday.
