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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Stocks rebound after morning slump

UPDATED at 1 p.m.

Stocks are back to where they started today, after shaking off a big late-morning slump.

As of 1 p.m., the Dow is almost even on the day.

The broader S&P 500 and the tech-heavy Nasdaq are both down one-tenth of 1 percent.

Stocks took a dive starting at around 10 a.m. and bottomed 30 minutes later, with the Dow having shed some 80 points, as the Street reacted to Fed Chairman Ben Bernanke's comments on removing stimulus from the economy. Bernanke said he may increase the discount rate soon.

Since then, though, stocks have made a steady slog back upward.

Stocks mixed at opening

9:53 a.m.: Stocks are mixed at opening, following a report that showed the U.S. trade gap widened and further concerns about debt-burdened Greece.

In the first 20 minutes of trading, the Dow is down one-tenth of 1 percent.

The broader S&P 500 is down a little more than one-tenth of 1 percent and the tech-heavy Nasdaq is even.

The trade gap jumped to a larger-than-expected $40.2 billion, as imports grew, thanks to some recovery in the latter months of 2009. Part of the bump came from oil imports, which grew sharply, even though demand for gasoline fell.

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By Frank Ahrens  |  February 10, 2010; 1:00 PM ET
Categories:  The Ticker , Wall Street  | Tags: Dow Jones, nasdaq, s&p 500  
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The market ended down. That probably is not too good of a sign for a market that is trying to work itself up from a short term oversold condition. Bernanke's comments don't have much content. Of course, there are ways to withdraw liquidity from the market. Of course, the Fed might take some steps sometime. Of course, the Fed is not going to start drawing large amounts of liquidity out of a very weak economy. The real question is whether the Fed really has stopped or at least is near stopping pumping more liquidity into the economy. If asset prices trend down once there is a relaxation of the Fed pump, is the Fed willing to accept a free market or are they going to try to intervene and set asset values that they like? Only time will tell.

Posted by: dnjake | February 10, 2010 7:07 PM | Report abuse

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