The Dow Jones industrial average gained rose 3.33 points to close at 5,877.36, having slipped from an early 21-point gain and then recovered from an 18-point loss. Advancers led decliners by an 11-to-9 margin on the New York Stock Exchange, with 1,307 up, 1,068 down and 855 unchanged. NYSE volume was 451.70 million shares, vs. 457.88 million yesterday.
The NYSE's composite rose 0.07 to 365.30, and the Standard & Poor's 500-stock index ended 0.19 higher at 685.80. The Nasdaq composite index rose 9.33 to 1,224.60, and the American Stock Exchange index was up 2.49 to 565.89.
Blue-chip and other large-company issues had started the session higher, drawing support from an improving interest rate backdrop in the bond market, but then trailed back near starting levels amid an uncertain outlook for corporate profits.
Bonds rallied again on the Fed's apparent determination that the economy is slowing enough to keep inflation in check without an increase in the central bank's key lending rates. But the potential drag of a slowing economy on third-quarter profits left some investors nervous about bidding the Dow and other large-company measures further into record territory after the recent rally.
As bond prices rose today, the yield on the 30-year Treasury bond - a key determinant of corporate and consumer borrowing costs - fell to 6.92 percent from late Tuesday's 6.98 percent.