Wall Street hit by economic blues
The Dow and the S&P 500 fell for a third day after disappointing figures from Wal-Mart and Hewlett-Packard, although a late rebound suggested investors may be looking for a short-term bounce.
Both the S&P 500 and Nasdaq dipped below their 50-day moving averages, but those levels appeared to bring in buying interest.
Recent weakness in sectors tied to economic growth and the sharp decline in commodities have spurred talk of a prolonged pullback. Short-term traders see an opportunity, judging by late gains in certain energy names and financials' strong performance.
The Dow Jones industrial average dropped 68.79 points, or 0.55 percent, to 12,479.58. The Standard & Poor's 500 Index dropped a mere 0.49 of a point, or 0.04 percent, to 1,328.98. But the Nasdaq Composite Index gained 0.90 of a point, or 0.03 percent, to 2,783.21.
European shares edged lower, weighed on by persistent peripheral euro zone debt concerns with OMV among the top fallers after a refinancing plan.
The pan-European FTSEurofirst 300 index of top shares was down 0.1 percent at 1,138.04 points by 0855 GMT in a choppy session.
Across Europe, the FTSE 100 index was down 0.1 percent, Germany's DAX fell 0.6 percent and France's CAC 40 was 0.1 percent lower.Japan's Nikkei average was nearly flat after slipping earlier as a weaker yen offset losses in the utility sector which was dragged down by Tokyo Electric Power Co.
The benchmark index was lower most of the day due to a pullback in other risk assets on volatile commodity prices and as investors factored in the expected end of the Federal Reserve's stimulus program in June.
The Nikkei was up 0.1 percent at 9,567.02, while the broader Topix index was 0.1 percent lower at 828.85.
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