Market Pre-Open Updates

S&P 500 was down 6 points at 1115. It bounced ced higher off 1,100, its 200-day moving average, one of the most important technical indicators in any market. Nasdaq was off 19 points to 2,298.

US stocks pared heavy losses in late Wednesday session as the euro rallied 1.6% from a four-year low to 1.2393 on speculation European leaders will take steps to support the currency and following the release of positive US economic news.

The DJIA fell 67 points to 10,444 by the close after losing as much as 186 points earlier. The tech-rich Nasdaq Composite fell 19 points to 2,298 while the S&P 500 fell 6 points to 1,115. At the close, both the Dow and the Nasdaq had climbed back into positive territory for the year, while the S&P 500 stayed flat where it ended 2009. The broad market benchmark briefly skirted below its 200-day moving average before rebounding off the key technical support, setting a floor under its recent drop.

As the impact of the eurozone crisis sunk in, there were concerns about the effect on US firms especially those with heavy exposure to Europe. The Dow's industrial stocks were most badly hit with the sector off almost 2%. Shares of heavy machinery maker Caterpillar slid 2.8%.

Stock indices barely budged after the Fed upgraded its growth forecasts for this year on signs of a strengthening economic recovery, predicting growth would hit between 3.2-3.7% this year, up from 2.8-3.5% estimate made in January. Data also showed the US Apr CPI fell for the first time in a year and the closely watched core inflation rate eked out its smallest annual gain since 1966, further supporting the Fed's vow to keep interest rates low for some time

However, an industry report released separately showed demand for loans to buy homes sank 27.1% to a 13-year low last week after the expiry of a home buyers tax credit. A record share of home loans were also in foreclosure, suggesting a recovery in housing will be painfully slow.