US stocks end mixed after a volatile day

U.S. stocks ended Monday little changed after a volatile day marked by wariness ahead of next week's policy-setting meeting of the Federal Reserve. It suggests a relative lack of conviction either way. Until there is more visibility in how things will play out in the credit markets this trend will continue,analysts said.

Wall Street was still nervous after Friday's dismal employment report. The data, which showed the first monthly decline in jobs in four years, rekindled fears about housing and credit market weakness bleeding into the overall economy and squeezing consumer spending. Speeches from Fed officials Monday seemed to give investors a bit more reason to be optimistic about the economy, but the officials avoided hinting at how the central bank might alter rates.

San Francisco Fed President Janet Yellen said that while market turmoil has the potential to hurt the economy, rate policy should not be used to shield investors from losses. Dallas Fed President Richard Fisher said the economy appears to be "weathering the storm," and Atlanta Fed President Dennis Lockhart said investors should consider Friday's unemployment report in the context of a mostly strong batch of retail sales reports.

For many investors, a rate cut after more than a year of the Fed standing pat on rates is practically a given. The debate, as they see it, is whether the Fed on Sept. 18 will reduce rates by a quarter percentage point or a half percentage point to loosen up the tight credit markets and also, if the central bank will continue to reduce rates as the year goes on. There could be a major sell-off if the Fed doesn't reduce rates next week.

Trading volume hit 1.3 billion at the New York Stock Exchange, with decliners beating advancers 5 to 3. At the Nasdaq, 1.7 billion were exchanged, with decliners ahead of advancing stocks nearly 2 to 1. The Dow Jones industrial average rose 14.47, or 0.11%, to 13,127.85, after falling 250 points on Friday and switching directions several times throughout the session Monday. Broader stock indexes fell. The Standard & Poor's 500 index slipped 1.85, or 0.13%, to 1,451.70, and the Nasdaq composite index declined 6.59, or 0.26%, to 2,559.11.

Bond prices rose as stocks slipped, pushing the yield on the benchmark 10-year Treasury note down to 4.27% from 4.37% late Friday.


Indian ADRs end mixed; Wipro down more than 2%

Major Indian ADRs ended mixed as US markets too ended flat. In the technology pack, Infosys Technologies was down 1.82% at 46.85, Patni Computers was up 1.94% at 23.15, Satyam Computers was down 1.23% at 24.05, while Wipro ended the day 2.12% lower at 13.82.

In the non-technology pack, HDFC Bank was up 1.59% at 88, VSNL was up 0.51% at 19.60, ICICI Bank was up 0.68% at 44.22, MTNL was down 0.28% at 7.05, Tata Motors was up 1.18% at 17.10, Dr Reddy's Lab was down 0.74% at 16.20 and Sterlite was down 2.6% at 15.03.