Stocks Stage Turnaround
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Stocks staged a dramatic turnaround Friday, as an early sell-off on fears of inflation and an economic slowdown turned into gains by day's end.
The market tumbled in the first hour of trading, as a record high in the trade deficit and a steepening yield curve short-term interest rates higher than long-term ones raised fears that the Federal Reserve would raise interest rates too far and send the economy into recession.
But after falling nearly 1% to start the day, stocks battled back to end the day in the green.
and Dell, new Fed Chairman Ben Bernanke's first congressional testimony and a report on wholesale inflation.
The Nasdaq rose 6 to 2261 after trading as low as 2235, the S&P 500 added 3 to 1266, and the Dow gained 35 to 10,919. Volume declined to 2.26 billion shares on the NYSE, and 2.08 billion on the Nasdaq. Advancers led 16-15 on the NYSE, but decliners held a 16-13 edge on the Nasdaq. Upside volume was 47% on the NYSE, and 60% on the Nasdaq. New highs-new lows were 84-35 on the NYSE, and 66-35 on the Nasdaq.
McAfeesoared 18% after beating lowered expectations, while Oraclewas unchanged on inline guidance.
Cincinnati Bellclimbed 9% on its results, and TriZettoand Ultimate Softwaregained on their earnings.
TriQuintfell 12% on its results, and Salesforce.comdropped 10% on reports that it may have lost a large contract to Oracle.