Stocks up as investors dismiss some concern about inflation

NEW YORK -- Wall Street recovered from an early loss and turned positive Wednesday as investors appeared to set aside some concerns about a rise in consumer prices and lackluster readings on home construction.

Stocks bounced around but remained higher after the Federal Reserve released minutes from its last meeting that revealed the central bank has lowered its expectations for the economy this year amid weakness in the credit markets and in housing. The Fed's deliberations from its meetings last month didn't reveal sizable concerns about inflation, perhaps a welcome sign as investors grapple with new evidence of increases in consumer prices as well as rising oil.

The minutes relate to the Fed's Jan. 30 decision to lower key interest rates by a half-point to 3 percent, following an emergency three-quarter point cut the prior week.

Stocks initially fell Wednesday after an uptick in consumer prices and a record finish for oil prices Tuesday raised fresh worries that the Fed will have less room to lower interest rates in the coming months. Lowering rates can increase inflationary pressures.

While investors appeared to suppress some of their unease they still kept to mostly modest moves. The day's back-and-forth trading was typical of the sessions that Wall Street has endured since the second half of last year.

In midafternoon trading, the Dow Jones industrial average rose 21.57, or 0.17 percent, to 12,358.79.

Broader stock indicators also rose. The Standard & Poor's 500 index advanced 3.22, or 0.24 percent, to 1,352.00, and the Nasdaq composite index rose 5.97, or 0.26 percent, to 2,312.17.