NEW YORK?US stocks clawed back into positive territory on Wednesday for the second consecutive day after strong earning reports.
The Dow Jones Industrial Average was up 9.69 points (0.09 percent) to end at 10,415.54, wiping out earlier losses of up to 75 points.
The tech-rich Nasdaq composite index gained 6.26 points (0.28 percent) to 2,215.70 while the broader S&P 500 index inched up 1.62 points (0.15 percent) at 1,094.16.
"Light volume (trade) makes it easier to push stocks around in both directions," said Scott Marcouiller, chief technical market strategist at Wells Fargo.
"You are setting up a good base where the market is putting itself in a position to rally, but there is a lot of confusion," he said.
On Tuesday, stocks jumped on positive US economic data and company earnings, especially from giant retailer Wal-Mart, ending a five-day negative streak.
Discount retailer chain Target reported Wednesday a $679-million profit in the second quarter, beating analysts' expectations, as well as a 3.8 percent increase in sales.
In addition, John Deere, the world's largest tractor manufacturer, reported a $617-million quarterly earning, exceeding expectations on Wall Street.
Target shares rose by 2.51 percent while Deere's stocks dropped 1.86 percent despite its positive report.
The positive reports initially failed to dissipate traders' fears about recovery of the world's largest economy, but the market mood turned upbeat as the day went by.
Trade was also animated over news that the Anglo-Australian BHP Billiton, the world's largest mining firm, would take a direct buying bid to shareholders of the Canadian group Potash, the world's top fertilizer producer.
Potash shares rose 3.32 percent, one day after jumping by more than 27 percent after the company's board rebuffed a $39-billion takeover bid by BHP, whose shares were down 2.89 percent.
The bond market ended slightly higher.
The yield on the 10-year US Treasury bond was down to 2.641 percent from 2.645 percent Tuesday while that on the 30-year bond fell to 3.734 percent from 3.770 percent. Bond yield and prices move in opposite directions.
