Wall Street recap: Rising commodities, dealmaking lift stocks

Rising commodities, dealmaking lift stocks

NEW YORK Investors sidestepped some of their doubts about the economy and bought energy and industrial stocks as commodity prices rose.

Stocks ended back-and-forth trading mostly higher yesterday as a spike in the price of gold and corporate dealmaking extended an advance from Monday. The gains in commodity prices helped stocks pare early losses.

The Dow Jones industrial average slipped 17 points, while broader indexes rose modestly.

Investors were encouraged by billionaire investor Warren Buffett's decision to pay $34 billion for the railroad Burlington Northern Santa Fe in what he termed an "all-in wager" on the future of the U.S. economy. Meanwhile, tool maker Stanley Works struck a deal to acquire Black & Decker Corp. for $3.46 billion in stock.

The uncertainty about the economy has led to swings in the market. The Dow has risen or fallen more than 100 points in six of the past eight trading days, the most volatility since March.

Analysts said a break in the advance could ease worries that the market has advanced too quickly.

"This is a much-needed healthy pause and reassessment. It ran so far," said David Darst, chief investment strategist for Morgan Stanley Smith Barney in New York.

The Dow fell 17.53, or 0.2 percent, to 9,771.91, after being down as much as 86 points.