Stocks wavered between gains and losses late yesterday afternoon trading as investors weighed a soothing comment on inflation from America's top central banker against nagging worries that the limping US economy will further punish corporate profits.
Earlier in the day, Federal Reserve Chairman Alan Greenspan bolstered investors' optimism after he told delegates at the International Monetary Conference in Singapore that he did not see inflationary pressures in the United States.
Oil-related stocks also bolstered the markets as oil prices rose after Iraq halted exports in a dispute with the United Nations and topoil producing nations sent mixed signals about whether they would be willing to step up and fulfill demand.
But signs that the US economy and profits are not yet in the clear - including an uninspiring report on corporate layoffs and a warning of unexpectedly weak earnings and revenues from Cypress Semi-conductor - left investors wary of bidding stocks much higher.
"The markets are looking for a shepherd, but they're unsure whether they're getting someone to lead them to greener pastures or the slaughterhouse," said John Forelli, portfolio manager at Independence Investment LLC, which oversees $25 billion.
The blue-chip Dow Jones industrial average gained 71.11 points to 11,061, while the broader Standard & Poor's 500 Index was up 6.38 points to 1,267.05. The technology-laced Nasdaq Composite Index added 6.47 points to 2,155.91, slightly offsetting last week's 4.5 per cent decline.
