US recovers losses after early jitters

US stocks regained most of their early losses in light volume and ended slightly lower yesterday as prospects for strong earnings helped counter fears Portugal would be forced into a bailout.

Investors say the market’s upward trend remains intact, but the S&P’s third straight session of declines suggests momentum has stalled.

Traders also cited the positive outlook for earnings as a catalyst for the rebound. Even though The S&P 500 edged down, the number of advancers outweighed decliners on both the New York Stock Exchange and the Nasdaq.

The Dow Jones industrial average fell 37.31 points, or 0.32 per cent, to 11,637.45. The Standard & Poor’s 500 Index dipped 1.75 points, or 0.14 per cent, to 1,269.75. The Nasdaq Composite Index gained 4.63 points, or 0.17 per cent, to 2,707.80.