Stock Market

Portfolio managers may be dizzy after the recent gymnastics in a market that's had an unhappy new year. That hasn't stopped a few from dumpster diving. The Federal Reserve's big interest-rate cut last week put a shine on at least a few tarnished financial stocks, and selected tech issues are getting some love.

The stock market has been on the upswing, but few investors are relaxing. This week's data on housing, retailers and labor costs will give Wall Street an idea of whether the economy is weakening or inflation is accelerating -- or both. Recent government reports have not painted a rosy picture of the economy, but they haven't indicated the nation is in the midst of a deep recession either.

Prices of nearly all kinds of commodities surged Friday, sending an index of 19 commodity futures to a record high. Platinum futures hit their seventh record high in the last eight trading days. Wheat and rice futures also set records. In the first three weeks of this year, markets for key natural resources such as oil, gold and copper saw volatile, mostly downward, moves on fears of a U.S. recession.

Stocks finished mostly higher Tuesday, led by the beaten-down financial service sector. The Dow Jones industrials rose more than 130 points. Meanwhile, yields on junk bonds rose to a five-year high. And prices of many commodities sank, slamming the brakes on record-setting rallies this month in raw materials.

February's stock market so far has displayed more stability than January's, but Wall Street wants to see a stronger economy on the horizon before it trades confidently again. Investors are not counting on this week's readings on housing, inflation and manufacturing to give them that assurance. As a result, they are bracing for more volatility.

Wall Street gave up a big early advance and closed mixed Tuesday after a strong rally in commodities, including oil, stoked inflation fears and helped drive up long-term bond yields. The Dow Jones industrial average, up as much as 156 points early in the session, ended with a loss of 10.99 points, or 0.1%, at 12,337.22. The Standard & Poor's 500 index eased 1.21 points, or 0.1%, to 1,348.78. The Nasdaq composite fell 15.60 points, or 0.7%, to 2,306.20.

Stocks and bonds Wednesday shook off a surprising jump in consumer price inflation and another record close for oil prices. Stocks finished broadly higher and long-term Treasury yields ended flat to lower as a strong belief that the Federal Reserve would continue to cut short-term interest rates trumped other worries. The Dow Jones industrials gained 90.04 points, or 0.7%, to 12,427.

The U.S. economy is getting a lot worse in a hurry, by many accounts. But the stock market isn't. Share prices overall have bounced modestly from what were multiyear lows for many issues in January. And the bears have had trouble getting any sell-offs to stick in recent weeks despite the ongoing gloom about the slowing economy and rising inflation pressures. For many investors who were horrified by the losses on their January investment statements, February has brought some relief.

Stocks ended a seesaw session mixed Wednesday after Federal Reserve Chairman Ben S. Bernanke indicated the central bank was more concerned about the sagging economy than the immediate risks of inflation. In other trading, another sell-off hit the municipal bond market, driving yields sharply higher. The Fed chief's remarks, coupled with a regulator's decision to let Fannie Mae and Freddie Mac buy more mortgages, boosted shares early in the session before they retreated later in the day.

Remember when Wall Street was gaga over Google? Despite its quirky approach to business, Google Inc. became a favorite among investors as the company best positioned to cash in on the digital media revolution. The Internet search giant's shares first hit the market at $85 in August 2004 and had risen nearly ninefold by late last year, turning Google into one of America's most valuable companies. But since reaching a record $741.79 in November, Google's stock price has plunged 40%.