Wall St dips as Bernanke offsets Greece report
U.S. stocks dipped on Wednesday as worries over Federal Reserve Chairman Ben Bernanke’s strategy after the economy recovers offset optimism about a possible rescue for debt-burdened Greece.
Trading volume was light, with many participants leaving early because of an East Coast snowstorm.
The French daily Le Monde wrote that France and Germany were set to present a plan at a European Union summit on Thursday aimed at preventing Greece from going bankrupt.
But stocks initially dropped after Bernanke gave his most detailed description to date of how the Fed would dismantle
emergency supports put in place to bolster an ailing economy. Shares recovered as some felt the initial reaction was overdone.
“A little tone that interest rates might go up some time spooked investors a little bit in the morning,” said Alan Lancz, president of Alan B. Lancz & Associates Inc., an investment advisory firm in Toledo, Ohio.
“I think we could have been down more, but the news came out (on Greece), and, short-term, I think it alleviates one of the clouds that have been hanging over the market.”
The Dow Jones industrial average (DJI:^DJI – News) was down 20.26 points, or 0.20 percent, at 10,038.38. The Standard & Poor’s 500 Index (^SPX – News) was down 2.39 points, or 0.22 percent, at 1,068.13. The Nasdaq Composite Index (Nasdaq:^IXIC – News) was down 3.00 points, or 0.14 percent, at 2,147.87.
The market fluctuated between positive and negative during the day, and traders said the low volume was a major factor.
On the corporate side, Sprint Nextel Corp (NYSE:S – News) sank 8 percent to $3.36 after it reported quarterly revenue that missed Wall Street’s consensus forecast. Wyndham Worldwide Corp (NYSE:WYN – News) gained 4.7 percent to $22.22 after its earnings beat expectations and it tripled its dividend.