Stocks got off to a strong start to the new year on Wednesday, but concern about slowing growth and rising inflation undid the rally.
Stocks rose early on a rebound in manufacturing, better than expected December sales at Wal-Martand a change at the top at Home Depot, but Federal Reserve meeting minutes showing concern about both economic growth and inflation sparked a steep sell-off before stocks climbed back to end the day little changed.
Downgrades to AMD, Amazonand GMalso weighed on stocks.
Carrekerrose on news that it will be acquired by Checkfree.
Agilysyssoared after selling its distribution businesses to Arrow, while Alcatel Lucentgained after picking up Nortel’sUMTS radio access business.
Sonusgained 7% on its outlook.
The Nasdaq rose 8 to 2423, the S&P 500 slipped 1 to 1416, and the Dow added 11 to 12,474. Volume soared to 3.38 billion shares on the NYSE, and 2.53 billion on the Nasdaq. Advancers led 17-15 on the NYSE, and 16-15 on the Nasdaq. Upside volume was 47% on the NYSE, and 65% on the Nasdaq. New highs-new lows were 324-36 on the NYSE, and 150-46 on the Nasdaq.