The Dow Jones industrial average (INDU) fell 6 points, or 0.1%. The S&P 500 (SPX) index rose 3 points, or 0.3%, and the Nasdaq composite (COMP) rose 7 points, or 0.7%.

Stocks rose Monday and Tuesday, with the broad S&P 500 gaining just short of 3%, recovering most of what it had lost in the previous two weeks. The sharp advance was typical of the seven-month-old rally, in which investors have used small selloffs as an opportunity to jump back into stocks.

But the rally ran into some resistance Wednesday as the dollar turned mixed and investors looked to the start of the third-quarter financial reporting period.

Many investors are waiting to see how the earnings turn out before they either pile back into stocks in a big way or back out more aggressively. Currently, analysts expect third-quarter profits to have fallen around 24% versus a year ago, with the heaviest percentage losses expected in the materials, energy and industrials' sectors.

Dow component Alcoa (AA, Fortune 500) got things started on the right foot after the close Wednesday, reporting quarterly earnings and revenue that fell from a year ago but surpassed analysts' estimates. Alcoa's report is typically seen as the symbolic start of the reporting period, as it is usually the first Dow component to report.

While it was a positive omen, investors are likely going to remain on edge until the end of the month, when a majority of the earnings have been released.

"In the vaccuum of earnings news, Alcoa's results are good, particularly because they beat on revenue," said Donald Selkin, chief market strategist at National Securities.

"But Alcoa will only have a nominal effect on the market Thursday," he said, noting that it is the least-influential component on the price-weighted Dow. "Next week brings the heavyweights."

Intel (INTC, Fortune 500), Google (GOOG, Fortune 500), Goldman Sachs (GS, Fortune 500) and a number of other financials are on the docket for next week.

Financials are expected to post the best results of any sector, due to easy comparisons against an abysmal third quarter of 2008. The sector is expected to see earnings growth of 59%.

The broad S&P 500 is expeced to see a drop in profits for the ninth quarter in a row, the worst since Thomson began tracking results a decade ago.

Wary after the run: Investors are cautious both about earnings and because of the fast pace of the run since the March lows, said Harry Clark, founder and CEO at Clark Capital Management Group.

"I think people are looking at the weakness in the jobs market and the run-up stocks have already seen, and they're a bit nervous," Clark said.

However, he said that the last few days have indicated that any small selloff will be greeted with renewed buying interest. Also, as the end of the year draws nearer, hedge funds and portfolio managers will have to turn more cash into investments. That could give the market a year-end boost.

Investors are aware that October has historically been a tough month, Clark said, citing the 1929 and 1997 crashes and major selloffs in the late '70s. But it can also be a positive month, particularly when it follows a strong September, like it did this year.

Besides, 2009 has been a year that has consistently defied historical trends.

Since bottoming at a 12-year low on March 9, the S&P 500 has gained 56%, and the Dow has gained 49% as of Tuesday's close. After hitting a six-year low, the Nasdaq has gained nearly 68%.

On the move: Boeing (BA, Fortune 500), United Technologies (UTX, Fortune 500), 3M (MMM, Fortune 500) and Travelers Companies (TRV, Fortune 500) were among the biggest decliners on the blue-chip average. They were also among the biggest gainers in the early-week rally.

But a late-session rally in a variety of financial stocks gave the market a boost.

World markets: Global markets were mixed after rallying in the previous two sessions. In Europe, London's FTSE 100 lost 0.6%, while France's CAC 40 and Germany's DAX both lost around 0.3%. Asian markets ended higher.

Currency and commodities: The dollar gained versus the euro and fell against the yen, reversing its recent slide against a basket of currencies.

U.S. light crude oil for November delivery fell $1.31 to settle at $69.57 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $4.70 to settle at $1,044.40 an ounce after ending the previous session at a record $1,039.70. The previous record close of $1,020.20 was set two weeks ago.

Bonds: Treasury prices rallied, lowering the yield on the 10-year note to 3.19% from 3.25% late Tuesday. Treasury prices and yields move in opposite directions.  

At 7:12 a.m. ET, S&P 500, Nasdaq-100 and Dow Jones industrial average futures were higher.

Futures measure current index values against their perceived future performance and offer an indication of how markets may open when trading begins.

This follows a rally on Tuesday, the second consecutive session of gains on Wall Street, as a weaker dollar boosted commodities and a broad range of stocks. The Dow Jones industrial average and the S&P 500 index each gained 1.4% and the Nasdaq composite rose 1.7%. The weak dollar also drove the price of gold to a record high.

"We've seen a market that's pretty closely linked to the commodities market," said Art Hogan, chief market strategist at Jefferies & Co. "We've seen the dollar's weakness cause commodities to rally and that's dragged the [stock] markets up as well."

"I think it's important to note that all of this is happening in a vacuum of any real news," Hogan added, noting that this commodities-stock cause and effect is subject to change, especially by next week, when the news will be dominated by a wave of third-quarter results.

Earnings: The third-quarter corporate reporting period begins when aluminum maker Alcoa (AA, Fortune 500), a Dow component, reports after U.S. markets close Wednesday.

Companies: Stocks to watch include Amazon (AMZN, Fortune 500), which cut the price of its Kindle e-book reader by $40 to $259.

World markets: Global stock indexes rallied. In Asia, Japan's Nikkei jumped 1.1% and the Hang Seng in Hong Kong rallied 2%. European shares were also higher in midday trading.

Money and oil: The dollar edged up against many of the major international currencies, including the euro, the yen and the pound. The price of oil climbed 40 cents to $71.28 a barrel. 

The Dow Jones industrial average (INDU) rose 132 points, or 1.4%. The S&P 500 (SPX) index gained 14 points, or 1.4%, and the Nasdaq composite (COMP) rose 35 points, or 1.7%.

The runup had been stronger through midday, but lost some steam as the dollar cut losses and financial shares turned mixed to negative.

Gains were broad-based, with 29 of 30 Dow stocks rising as investors piled into a variety of stocks battered in a two-week selloff. Worries that the rally had gotten ahead of the recovery caused the selloff at the end of the third quarter and start of the fourth.

But that decline of just over 4% on the S&P 500 seemed to give investors the entry point they were looking for to jump back into stocks.

"I think most people believe that stocks are going to generally keep drifting higher for the next few months," said Gary Webb, CEO at Webb Financial Group. "So while nothing fundamental has changed this week, investors are taking opportunities to buy on the lows."

"We've seen a lot of these elevator moments over the last month, these short, sharp pullbacks that ended up bringing people back in," said Fred Dickson, chief market strategist at D.A. Davidson & Co. "That's what we're seeing here."

Investors also welcomed reports that Australia became the first major economy to lift interest rates since the start of the financial crisis.

Meanwhile, the falling dollar boosted gold to an all-time high of $1,045 an ounce during the session and $1,039.70 at the close. The weak U.S. currency was also good for the stocks of multi-national companies that benefit from a weaker dollar.

A weaker-than-expected response to a government debt auction dulled some of the shine on the rally.

Economy: An upbeat reading on the services sector helped spark Monday's advance, but there was little else on the docket until Wednesday when readings on consumer credit and the Treasury budget are due.

Seven months and counting: A rally in U.S. stocks that started in March, petered out late September at the end of an otherwise upbeat third quarter. In the July-September period, the Dow and S&P 500 both jumped 15%, their best quarter in a decade, while the Nasdaq rose 15.7%, its best quarter in six years.

But the September selloff was modest amid the broader rally that's been in place since last March. Since bottoming at a 12-year low March 9, the S&P 500 has gained 56%, and the Dow has gained 49% as of Tuesday's close. After hitting a six-year low, the Nasdaq has gained nearly 68%.

On the move: The broad advance benefited a number of stocks and sectors.

Materials and commodities stocks surged, including Dow components Alcoa (AA, Fortune 500), DuPont (DD, Fortune 500), Chevron (CVX, Fortune 500) and Exxon Mobil (XOM, Fortune 500).

The Dow's other biggest gainers were Caterpillar (CAT, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), IBM (IBM, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and United Technologies (UTX, Fortune 500).

Market breadth was positive. On the New York Stock Exchange, winners topped losers by almost four to one on volume of 1.23 billion shares. On the Nasdaq, advancers topped decliners by almost three to one on volume of 2.42 billion shares.

Results due to begin: The third-quarter earnings reporting period unofficially kicks off Wednesday with Dow compenent Alcoa, as is typical. The aluminum maker is expected to post a loss versus a profit a year ago, demonstrating the weak quarter expected for the materials sector.

S&P 500 profits are expected to have dropped almost 25% from the third quarter of 2008.

Profit warnings: Ahead of the first big batch of results, a few companies issued warnings about their just-completed quarter.

Dow component Boeing (BA, Fortune 500) said it will take a $1 billion charge in the third quarter because of higher costs to produce its 747-8 airplanes amid rough market conditions. The stock was little changed.

St. Jude Medical (STJ) warned Tuesday that third-quarter results would miss earlier forecasts because hospitals bought fewer of its medical devices. Shares fell nearly 13% in unusually active New York Stock Exchange trading.

World markets: Global markets rallied after Australia became the first major economy to boost interest rates since the financial crisis began. Australia's central bank boosted its overnight lending rate by a quarter percentage point to 3.25%, saying it was time to start taking away the stimulus of low rates as the economy is no longer weakening.

In Europe, London's FTSE 100 gained 2.2%, France's CAC 40 gained 2.5% and Germany's DAX gained 2.7%. Asian markets ended higher.

Currency and commodities: The dollar tumbled versus the euro and the yen, resuming its recent plunge against a basket of currencies.

U.S. light crude oil for November delivery settled up 47 cents to $70.88 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $21.90 to settle at a record $1,039.70 an ounce, after rising as high as $1,045, an intraday record. The previous record close of $1,020.20 was set two weeks ago.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.25% from 3.22% late Monday. Treasury prices and yields move in opposite directions.

The government saw good, but not great, demand for its auction of $39 billion in 3-year notes. Treasury said the bid-to-cover ratio, which measures demand, was 2.76, short of the 3.02 ratio seen the last time it sold 3-year notes. 

A better-than-expected reading on the services sector of the economy and strong demand for Treasury's first bond auction of the week bolstered the broad-based gains.

The Dow Jones industrial average (INDU) rose 112 points, or 1.2%. The S&P 500 (SPX) index gained 15 points, or 1.5% and the Nasdaq composite (COMP) rose 20 points, or 1%.

Bank stocks led the advance, with Bank of America (BAC, Fortune 500) up 3.8%, JPMorgan Chase (JPM, Fortune 500) up 4.6% and Wells Fargo (WFC, Fortune 500) up 6.9%. The KBW Banking (BKX) index added 3.2%.

A roughly seven-month-long rally hit a roadblock at the end of September, with stocks falling for two straight weeks, and the major gauges losing around 5%. The declines were driven by a series of weaker-than-expected economic reports on housing, manufacturing, consumer confidence and employment.

The weak batch of reports marked a reversal after a period of steadily improving economic news. That raised more worries that the rally has gotten ahead of the recovery. Still, the declines over the last two weeks were pretty minimal, considering the runup that preceded them.

"I think the underlying trend of the market is still positive, despite the last two weeks," said Ted Weisberg, NYSE Floor Trader at Seaport Securities. "You're seeing that start to reassert itself today."

He said that the last two weeks of the old quarter and first two of the new one are typically something of a Never Never Land for the market, as investors await results and focus 100% on economic news. He said that this was true in the month surrounding the end of the second quarter and start of the third in July and it appears to be true again now.

"The risk, as we've seen over the last few weeks, is that the news can be less than terrific, making markets vulnerable," he said. "That's particularly the case after the kind of rally we've seen."

Since bottoming at a 12-year low March 9, the S&P 500 has gained 51.2%, and the Dow has gained 45% as of Monday's close. After hitting a six-year low, the Nasdaq has gained nearly 61%.

In the third quarter alone, the S&P 500 index and the Dow both jumped 15%, the best quarterly performance in a decade. The Nasdaq jumped 15.7%, its best quarterly performance since 2003.

Results on tap: The wave of third-quarter earnings reports due in the week ahead will determine whether the selloff continues or proves to be an entry point for more buyers. Alcoa unofficially begins the third-quarter reporting period Wednesday, as it usually does. The Dow aluminum maker is due to report a quarterly loss versus a profit a year ago, reflecting a weak materials sector.

Overall, S&P 500 profits are expected to have dropped almost 25% from the third quarter of 2008.

On the move: In addition to financials, the Dow's other big gainers included Boeing (BA, Fortune 500), United Technologies (UTX, Fortune 500), 3M (MMM, Fortune 500), Caterpillar (CAT, Fortune 500), Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500) and Hewlett-Packard (HPQ, Fortune 500). Of the 30 Dow components, 25 gained.

Among stock movers, Brocade Communications (BRCD) rallied 18.8% in unusually active trading on reports that it has put itself up for sale. Both Hewlett-Packard and Oracle (ORCL, Fortune 500) were cited as potential buyers, according to the Wall Street Journal.

Economy: The Institute for Supply Management's services sector index rose to 50.9 in September from 48.4 in August. Economists surveyed by Briefing.com thought it would rise to 50.0.

World markets: Global markets were mixed. In Europe, London's FTSE 100, France's CAC 40 and Germany's DAX all gained around 0.7%. Asian markets were mixed, with the Hong Kong Hang Seng higher and the Japanese Nikkei lower.

Currency and commodities: The dollar tumbled versus the euro and the yen, resuming its recent plunge against a basket of currencies.

U.S. light crude oil for October delivery rose 46 cents to $70.41 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $13.50 to settle at $1,017.80 an ounce. Gold closed at a record high of $1,020.20 two weeks ago.

Bonds: Treasury prices fell late Monday, with the yield on the 10-year note sticking at 3.22%. Treasury prices and yields move in opposite directions. The government's sale of $7 billion in 10-year Treasury Inflation Protected Securities (TIPS) saw strong demand, a good sign at the start of a week that brings $78 billion in debt auctions.

Market breadth was positive. On the New York Stock Exchange, winners beat losers five to one on volume of 1.12 billion shares. On the Nasdaq, decliners topped advancers by over two to one on volume of 2.21 billion shares. 

The Dow Jones industrial average (INDU) fell 30 points, or 0.3%. The S&P 500 (SPX) index lost 3 points, or 0.3%. The Nasdaq composite (COMP) lost just over 1 point, or 0.1%.

Stocks were volatile throughout the session as investors considered the economic news, a weaker dollar and a 6% spike in oil prices. End-of-quarter portfolio rebalancing on the part of investors and fund managers may have contributed to the volatility.

Wednesday was the last day of the third quarter, during which the Dow, S&P 500 and Nasdaq all gained just over 15%.

Stocks slipped Tuesday after a drop in consumer confidence added to worries about the sustainability of an economic recovery.

Since bottoming at a 12-year low March 9, the S&P 500 has gained just shy of 57%, and the Dow has gained around 49% (as of Tuesday's close). After hitting a six-year low, the Nasdaq has gained nearly 68%.

In addition, "there's still so much money on the sidelines that equity investors are using any selloffs to get back in," said Jane Caron, chief economic strategist at Dwight Asset Management.

Bank of America (BAC, Fortune 500) said after the close that CEO and president Ken Lewis is retiring on Dec. 31 after 40 years with the company.

Also after the close, General Motors said it is shutting down its Saturn division after a deal to sell it to Penske Automotive Group (PAG, Fortune 500) fell apart.

Economy: The Chicago PMI fell to 46.1 in September from 50 in August. Economists surveyed by Briefing.com thought it would rise to 52. A reading below 50 signifies contraction in the manufacturing sector.

Another report showed that employers in the private sector cut 254,000 jobs from their payrolls in September after cutting a revised 277,000 jobs in August. Economists expected 200,000 job cuts. The report, from payroll services firm ADP, is a lead up to Thursday's reading on announced jobs cuts and Friday's bigger government employment report.

While the jobs report could be a harbinger of Friday's bigger government jobs report, the manufacturing report is not consistently accurate, Caron said.

"We've seen a spate of reports over the last few weeks that have been disappointing relative to consensus, but it's been nothing that really alters the economic outlook," Caron said.

She said that rather than suggesting that the recovery is losing steam, the reports suggest that after months of improving data, economists have started boosting estimates.

A third report showed GDP shrank at a 0.7% annual rate in the second quarter versus the initially reported 1% and the 1.2% rate forecast by economists.

Companies: CIT Group (CIT, Fortune 500) sank 45% on worries that it may not be able to avoid bankruptcy after all.

The lender's shares rallied Tuesday on reports that it was negotiating a new credit facility that could total $10 billion.

On Wednesday, the Wall Street Journal said that CIT was negotiating a deal with its creditors that would give control of the company to bondholders and wipe out common shareholders. That sent shares tumbling.

Among other movers, shares of Discovery Laboratories (DSCO) surged 22.5% on renewed hopes that its treatment for certain respiratory illnesses affecting premature infants might get approval. The drug, Surfaxin, has already been rejected four times by the FDA. But on Wednesday, Discovery said that the FDA has agreed to its proposed plan for addressing those concerns.

Boeing (BA, Fortune 500), Caterpillar (CAT, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Chevron (CVX, Fortune 500) and Exxon Mobil (XOM, Fortune 500) were among the Dow's losers. Chevron and Exxon dipped despite a rise in oil prices.

Market breadth was negative. On the New York Stock Exchange, losers beat winners four to three on volume of 1.77 billion shares. On the Nasdaq, decliners topped advancers eight to five on volume of 2.75 billion shares.

World markets: Global markets were mixed. In Europe, London's FTSE 100, France's CAC 40 and Germany's DAX all ended lower. In Asia, the Hong Kong Hang Seng fell and the Japanese Nikkei rose.

Currency and commodities: The dollar fell versus the euro and yen, resuming the selloff that has pushed the U.S. currency to one-year lows against a basket of currencies over the last few weeks.

U.S. light crude oil for October delivery rose $3.90 to settle at $70.61 a barrel on the New York Mercantile Exchange after the government reported a surprise drop in inventories.

COMEX gold for December delivery rose $14.90 to settle at $1009.30 an ounce. Gold closed at a record high of $1,020.20 two weeks ago.

Bonds: Treasury prices slumped, raising the yield on the benchmark 10-year note to 3.30% from 3.29% late Tuesday. Treasury prices and yields move in opposite directions. 

The Dow Jones industrial average (INDU) lost 47 points, or 0.5%. The S&P 500 (SPX) index lost 2 points, or 0.2%. The Nasdaq composite (COMP) lost 2 points, or 0.2%.

Stocks churned in the early going, before turning lower after the 10 a.m. ET release of the consumer confidence report. By afternoon, stocks were volatile, bouncing across the unchanged line.

"Many people believe that you still need to see the consumer come back for the recovery to be sustainable," said Ron Kiddoo, chief investment officer at Cozad Asset Management. "If consumers aren't confident, they're not going to spend."

After sliding last week, stocks bounced back Monday as investors welcomed multi-billion dollar merger news involving Abbott Labs (ABT, Fortune 500) and Xerox (XRX, Fortune 500).

But the advance was short lived, with investors again showing caution after a seven-month rally that has left the leading indexes at nearly one-year highs.

"We continue to wait for the market to slow down," said Scott Armiger, portfolio manager at Christiana Bank & Trust.

Since bottoming at a 12-year low March 9, the S&P 500 has gained just shy of 57% and the Dow has gained around 49%, as of Tuesday's close. After hitting a six-year low, the Nasdaq has gained nearly 68%.

Bets that the economy is slowly starting to recover -- plus the impact of extraordinary amounts of fiscal and monetary stimulus -- have fueled the market advance.

Despite pervasive calls for a September selloff, stocks have held on to gains and moved higher this month.

"You don't know if a September selloff has just been pushed into October or if a big selloff can be avoided altogether," he said.

Economy: Consumer confidence dropped in September, potentially a bad sign ahead of the critical holiday retail sales period. The Conference Board said its consumer confidence index fell to 53.1 from 54.5 in August. Economists surveyed by Briefing.com were expecting the index to rise to 57.

The pace of falling home prices continued to slow, according to a report released before the markets opened. The Case-Shiller 20-city home price index rose 1.6% in July from June, more than triple what economists surveyed by Briefing.com were expecting.

Prices dropped 13.3% in July versus a year ago, a decline that was slower than the drop of 14.2% economists were expecting. Prices fell 15.4% year-over-year in June.

Company news: CIT Group (CIT, Fortune 500), fighting to pay off debt and avoid bankruptcy, is reportedly negotiating a new credit facility that could total $10 billion. Shares of the lender jumped 31%. Earlier, reports said that hedge fund manager John Paulson was considering merging CIT with failed mortgage lender IndyMac.

Dell unveiled its newest high-end, super-thin personal computer late Monday. Called the Latitude Z, the 4.5-pound PC will retail for $1,999. Dell (DELL, Fortune 500) shares fell 3% Tuesday.

JPMorgan Chase (JPM, Fortune 500) said it is shuffling some of the management responsibilities of its successful investment banking and asset management units. Shares were little changed.

Drugstore chain Walgreen (WAG, Fortune 500) reported weaker quarterly earnings and higher quarterly revenue, both of which topped analysts' estimates. Shares rose 9%.

Sequenom (SQNM)'s board said it has removed most of its management team, including the CEO, following a scandal involving mishandling of research and results on its prenatal Down syndrome test. Shares of the genetic analysis product developer fell 39% in unusually active NYSE trading.

Market breadth was negative. On the New York Stock Exchange, losers narrowly edged winners on volume of 1.18 billion shares. On the Nasdaq, decliners topped advancers by five to four on volume of 2.11 billion shares.

One-year later: Tuesday is the first anniversary of the Dow's biggest one-day point loss of all time, when the average plummeted 777.68 points and the broad market knocked out $1.2 trillion in value.

The plunge followed the House of Representatives's decision to reject the government's then $700 billion bank bailout plan. With banks around the globe teetering on the brink of collapse and credit nearly frozen, the decision sparked a panic that battered stocks in every sector.

The crash followed a brutal two-week roller-coaster, triggered by the near-meltdown of Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) and the collapse of Lehman Brothers.

World markets: Global markets were mixed. In Europe, London's FTSE 100 and France's CAC 40 were little changed, while Germany's DAX slipped. Asian markets rallied, with the Japanese Nikkei rising 0.9%.

Currency and commodities: The dollar rose versus the yen and euro, pushing higher after repeatedly hitting one-year lows against a basket of currencies over the last few weeks.

U.S. light crude oil for October delivery fell 13 cents to settle at $66.71 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose 30 cents to settle at $994.40 an ounce. Gold closed at a record high of $1,020.20 two weeks ago.

Bonds: Treasury prices slumped, raising the yield on the benchmark 10-year note to 3.29% from 3.28% late Monday. Treasury prices and yields move in opposite directions.