Jittery investors leave stocks mixed

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By Sara Lepro and Tim Paradis ASSOCIATED PRESS

NEW YORK | A late-day slump left stocks mixed Wednesday as investors couldn't hold on to their optimism after the Federal Reserve gave an encouraging assessment of the economy.

The Dow Jones Industrial Average, up more than 150 points after the Fed described the economy as showing more signs of recovery, closed up 30. The broader indexes were narrowly mixed.

Analysts couldn't point to any one reason why stocks gave up their gains, although some said the market is increasingly nervous as the release of the government's October jobs report on Friday approaches. Financial stocks fell especially hard in the last hour of trading after a House vote to speed up the effective date of limits on credit card companies, and added to the overall market's pullback.

The Fed, as expected, left its benchmark interest rate unchanged at a record low of essentially zero and said the economy is slowly rebounding. Its announcement followed reports on service industries and employment that eased two of the biggest worries about the economy.

The Dow rose 30.23, or 0.3 percent, to 9,802.14. It had been up as much as 156 after the Fed announcement.

The broader Standard & Poor's 500 Index rose 1.09, or 0.1 percent, to 1,046.50, and the Nasdaq Composite Index fell 1.80, or 0.1 percent, to 2,055.52.

The day's economic reports bolstered hopes that consumers could increase spending, a critical factor for an economic recovery.

The Institute for Supply Management (ISM) said service industry activity grew for a second straight month in October. The trade group's service index slipped to 50.6 from 50.9 in September. A reading above 50 signals growth.

The index didn't meet forecasts, but the ISM said new orders, which are an indicator of future business activity, grew faster. Business activity also picked up.

Encouraging news about the labor market also boosted investors' mood. The ADP National Employment Report said 203,000 private sector jobs were lost in October, down from the 227,000 lost in September. It was the seventh straight month of declining job losses. That stirred hopes for a better-than-expected employment report from the Labor Department on Friday.