Stocks rose early Wednesday but then fell after Federal Reserve (Fed) Chairman Ben Bernanke said that a U.S. recession was possible. The Dow industrials fell 0.4 percent, and other markets ended mixed. In testimony before a hearing of the Joint Economic Committee of Congress, Bernanke said he believed the economy is still “slightly growing at the moment,” though a U.S. economic recession is possible. He said he expects a continued rise in unemployment, and he noted that the economic outlook has worsened since the Fed's last forecast was released in January. In economic news, U.S. factory orders fell a bigger-than-expected 1.3 percent in February, though it was less than the 2.3 percent decline in January. The U.S. Energy Department's weekly petroleum inventory report showed crude supplies increased 7.3 million barrels, triple the amount analysts had expected. However, gasoline inventories fell more than expected. Light sweet crude for May delivery jumped $3.85 to $104.83 a barrel on the New York Mercantile Exchange after falling below $100 earlier in the session. COMEX gold for June delivery rose $12.40 to $900.20 an ounce after falling below $900 for the first time in nine weeks on Tuesday. The U.S. dollar fell near a record low against the euro but gained slightly versus the yen. The Dow Jones industrial average fell 45.44, or 0.4 percent, to 12,608.92. The broader Standard & Poor's 500 index fell 2.65, or 0.2 percent, to 1,367.53. The technology-heavy Nasdaq composite index was virtually unchanged, falling 1.35 to 2,361.40. The New York Stock Exchange composite index rose 15.97 to 9,104.46. The American Stock Exchange composite index rose 0.32 to 2,251.09. And the Russell 2000 index rose 1.62 to 712.27.
