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NEW YORK >> Wall Street, unable to shake a lethargy induced by interest rate worries, wobbled to a mixed finish yesterday as investors shrugged off a $10.5 billion bank merger and a bullish upgrade of Dell Inc.
Those developments and a very upbeat reading of business activity in the services sector by the Institute for Supply Management helped kept shares afloat for most of the session, but persistent rate worries ultimately stifled the advance.
"The market rallied a bit on the ISM numbers, but it seems to be a subdued rally," said David Hegarty, head trader at Commerzbank Securities. "The interest rate scenario obviously has been hanging over our heads ... and that will keep pressure on the equity market."
Advancers slightly outnumbered decliners on the New York Stock Exchange. Consolidated volume came to 2.05 billion shares, compared to 1.87 billion shares Tuesday.
The Dow Jones industrial average shed 6.25, or 0.1 percent, to 10,310.95.
The broader gauges were modestly higher. The Nasdaq composite index added 6.78, or 0.4 percent, to 1,957.26. The Standard & Poor's 500 index closed up 1.98, or 0.2 percent, at 1,121.53. The Russell 2000 index was up 0.42, or 0.1 percent, at 570.06.
The price of the Treasury's 10-year note closed down 5/32 point, while its yield rose to 4.59 percent from 4.57 percent yesterday. Two-year Treasury note prices were unchanged, but their yield rose to 2.33 percent from 2.32 percent yesterday.
The market was still absorbing Tuesday's statement from the Federal Reserve, which left interest rates unchanged but suggested the policy-making group would be inclined to push them higher as the economy continues to improve in the coming months. Analysts said trading was likely to remain volatile as the market further digests the Fed's revised position, along with other concerns that have overshadowed generally strong economic data and corporate earnings.
Among yesterday's winners on the Dow, the Coca-Cola Co. was up 82 cents at $51.09 after naming a former top official for one of its bottlers as its new chairman and chief executive.
Charter One Financial Inc. soared $7.91, or 22 percent, to $43.86, after the Royal Bank of Scotland Group announced plans to purchase it for $10.5 billion through its Citizens Financial Group Inc. subsidiary. The combined entity would be one of the 10 largest banks in the United States.
Dell rose 40 cents to $35.71 on an upgrade from Banc of America Securities, which raised its annual forecast on improved margins and computer and notebook sales forecasts.
Oil services shares declined after Banc of America lowered its rating on the sector, citing volatility and an expected drop in drilling activity. Schlumberger Ltd. lost 79 cents to $58.39, and Halliburton Co. fell 31 cents to $29.74.
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