Wll St. >>> Bulls Surrender Triple Digits Rally; Dow Below 10,000

Gains Go Down The Drain; More Euro Pains

U.S. stocks lost their gains Wednesday as Wall Street lapsed in another display of uncertainty after Federal Reserve Chairman Ben Bernanke voiced cautious optimism about the economy and the central bank's Beige Book also noted modest improvement.

Bluechips beat a steady path higher right out of the gate, suggesting that Tuesday's last-minute buying surge might continue into a second session. Positive comments on the economy helped boost sentiment; the Federal Reserve's Beige Book was relatively upbeat, with all 12 regions reporting modest improvement in economic activity. Plus, in testimony before the House Budget Committee, Fed chief Ben Bernanke asserted, "The economy... appears to be on track to continue to expand through this year and next."
However, the bulls lost conviction sometime around midday, as the embattled euro backpedaled below the closely watched $1.20 level. "It seems that this market just can't get out of its own way," lamented a senior market analyst, noting that the market "reverted to its old ways by dipping into the red and closing near its lows of the day. Even Big Ben's comments couldn't keep the sellers from eventually taking control." Despite an early journey above the key 10,000 level, the Dow Jones Industrial Average (DJIA – 9,899.25) suffered a steady collapse during the second half of the session, settling on a final drop of 40.7 points, or 0.4%. Only eight blue chips ended higher, led by Boeing, while Bank of America set the pace for the 22 decliners. The Dow's momentum today was capped by the 10,050 neighborhood, which is home to its declining 10-day moving average.
The S&P 500 Index (SPX – 1,055.69) also erased its early gains, finishing on a deficit of 6.3 points, or 0.6%. The SPX's intraday peak coincided almost exactly with the site of its own 10-day trendline.

Finally, the Nasdaq Composite (COMP – 2,158.85) endured a similarly volatile session, slipping from a morning high above 2,200 to close on a loss of 11.7 points, or 0.5%.

Unlike stocks, crude futures managed to cling to their gains today. After the Energy Information Administration (EIA) reported a larger-than-expected weekly decline in crude supplies, black gold successfully enticed a fresh wave of buyers. Meanwhile, the euro's continuing weakness against the U.S. dollar only served to enhance the hot commodity's appeal. By the time trading wrapped up, crude oil for July delivery was up $2.39, or 3.3%, at $74.38 per barrel.