NEW YORK (CNNfn) - U.S. equity indexes closed out a tumultuous day mostly in positive territory, as the Nasdaq composite broke out of a four-day losing streak and the Dow Jones industrial average finished only fractionally lower.
Investors were sent on a wild ride all day, as stocks zigzagged up and down, alternately shying away from and giving in to corporate profit woes.
Although ultimately ending up showing little forward-moving progress, stock indexes did manage to come back off of the day's lows.
"Everyone wants to see a sign that will urge people back into the markets," David Briggs, Head of Equity Trading, Federated Investors, told CNNfn's Street Sweep. "Right now, there is no confidence; there's no reason to do anything."
While analysts continued to debate whether the indexes tested lows, a broader concern was that after so many promises of an imminent rally, investors may not be willing to jump back into the market so quickly.
"The question here is, 'Will investors come back in?'" Nick Angilletta, head of retail sales trading at Salomon Smith Barney, told CNNfn's The Money Gang.
Lehman Bros. analyst Jeff Applegate cut his year-end targets for the Standard & Poor's 500 and the Dow Jones industrial average. According to Reuters, Applegate's year-end targets are now 1,375 for the S&P, down from 1,450, and 11,500 for the Dow, down from 12,250.
The Dow Jones industrial average closed down a fractional .34 to 9,605.51. It was down as much as 112 points, rallied to a nearly 66 point gain, then retreated again.
The Nasdaq composite index suffered an equally topsy-turvy session. It closed up 7.71 to 1,695.41 after being down as much as 18 points and up as much as 14. This followed four days of losses.
The S&P 500 closed up 6.76 to at 1,092.54.
Taking a wider look, a panel of economists cut their estimates on U.S. gross domestic product growth for 2001 and 2002, but two-thirds of the group forecast economic recovery by the end of the year.
Global pressures added to the confusion. European stock markets finished down, although above their day's lows. In Asia, Japan's Nikkei index fell to a 17-year low.
This weakness helped the dollar, which rose against both the euro and the yen. Treasury securities, which usually move inversely to stocks, fell, particularly in the longer-dated issues.
Though the Nasdaq and the S&P ended higher, and the Down closed down only barely, market breadth was negative. On the Nasdaq, losers beat winners 2,233 to 1,421 as 1.59 billion shares changed hands. On the New York Stock Exchange, decliners topped advancers 1,969 to 1,136 as 1.2 billion shares traded.
AT&T, AOL, Qwest among actives
Telecommunication, software and Internet stocks, beaten down in recent weeks, helped keep the indexes off the day's biggest lows.
"The idea that you can weather the storm by not being in tech may backfire," Charles Payne, president of Wall Street Strategies, told CNNfn's Market Call.
Qwest Communications (Q: up $1.76 to $19.90, Research, Estimates) initially pressured the telecommunications sector after it said it was cutting 5,000 jobs and updated its financial guidance to reflect what it called difficult business conditions.
While Qwest managed an about-face, the fellow telecoms it initially pressured couldn't bounce back as easily. Nortel Networks (NT: down $0.18 to $5.35, Research, Estimates) and Ciena (CIEN: down $0.74 to $13.41, Research, Estimates) stayed in the red.
Wireless technology company Qualcomm (QCOM: up $1.36 to $50.54, Research, Estimates) benefited from a Credit Suisse First Boston upgrade, while Level 3 Communications (LVLT: up $0.64 to $3.82, Research, Estimates) said it will offer to buy back up to $1.8 billion of its almost $8 million in debt.
Motorola (MOT: up $0.75 to $15.04, Research, Estimates) and the American depositary shares of international wireless companies Ericsson (ERICY: up $0.14 to $3.94, Research, Estimates) and Nokia (NOKIA: Research, Estimates) rose in tandem.
AT&T's (T: down $0.05 to $17.65, Research, Estimates) dance card is extremely active. Its broadband cable television unit has received at least two bids, including one from CNNfn parent AOL Time Warner (AOL: up $2.13 to $34.41, Research, Estimates), according to the Wall Street Journal.
The president of security software firm Checkpoint Software (CHKP: up $2.42 to $32.99, Research, Estimates) said he was comfortable with full-year revenue growth guidance of 30 percent to 50 percent. Fellow Internet security firm VeriSign (VRSN: up $1.53 to $40.08, Research, Estimates) rose on the news.
Helping the Nasdaq were Internet names Yahoo! (YHOO: up $0.99 to $11.74, Research, Estimates), DoubleClick (DCLK: up $0.59 to $8.25, Research, Estimates), and Ariba (ARBA: up $0.19 to $2.07, Research, Estimates).
Microsoft (MSFT: up $2.18 to $57.58, Research, Estimates) helped the Dow, saying it is preparing a proposal to settle the antitrust case against it and deflect the U.S. government's attempt to restrict the company's business. Oracle (ORCL: up $0.39 to $11.46, Research, Estimates) rose in tandem.
Utility company Dominion Resources (D: down $2.37 to $60.26, Research, Estimates) agreed to buy natural gas producer Louis Dreyfus Natural Gas (LD: up $5.72 to $38.68, Research, Estimates) in a stock and cash deal worth $1.8 billion.
Contract electronics manufacturer Flextronics (FLEX: down $0.47 to $17.96, Research, Estimates) fell after the company said at a conference it expects sales to hit records in the current second quarter and rise in the third quarter as well.
RF Micro Devices (RFMD: up $0.42 to $22.73, Research, Estimates), a maker of radio frequency products, raised its fiscal second-quarter financial outlook.
Circuit and chip maker Anadigics (ANAD: up $2.30 to $14.15, Research, Estimates) raised its third-quarter guidance and said it will announce additional job cuts.
Recent declines reflect the continued concern about corporate results. So far, 403 companies have issued warnings about the quarter ending this month, up from 97 in the comparable period a year ago, according to tracking firm First Call. 
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