stumbling out of the gates A bit redie atm...not much...

stumbling out of the gates A bit redie atm...not much thou...still think we'll get a greenie end... :)

-6.57

Stocks search for direction a day after major indexes post biggest rally in years; Fed comments await.

June 16, 2006: 10:11 AM EDT


NEW YORK (CNNMoney.com) - Stocks were mixed Friday, a day after the Dow posted its biggest gain in a year as inflation jitters eased.

The Dow (up 6.56 to 11,021.75, Charts) was little changed, while the broader Standard & Poor's 500 index (down 2.92 to 1,253.24, Charts) and Nasdaq composite (down 3.83 to 2,140.32, Charts) each slipped about 0.1 percent just after the open.

In the day's only major scheduled economic report, the University of Michigan said consumer sentiment rose unexpectedly in June, but the news did little to move markets.

Weighing on markets are perhaps the quadruple witching options expiration Friday, along with mixed news from software late Thursday.

Microsoft (Charts) Chairman Bill Gates made a surprise announcement Thursday that he would be leaving day-to-day responsibilities at the company in two years to concentrate on his charitable foundation, while Oracle (Charts) said its fiscal fourth quarter earnings and sales beat its earlier guidance.

In other corporate news, home builder KB Home (Charts) reported better than expected second quarter earnings after the market close Thursday, but it lowered it guidance for 2006 due to the slowing housing market.

Federal Reserve Chairman Ben Bernanke said Thursday inflation is within historical limits, higher energy prices aren't resulting in drastically higher prices and the bond market suggests inflation is contained.

His comments helped spark a late day rally that, in addition to the Dow's stellar performance, led the Nasdaq and S&P to their biggest point gain in over three years.

They also helped Asian markets to a higher close Thursday. Major European markets also were up in early trading. The dollar was lower against the euro and little changed against the yen.

Friday will see comments from two more Fed officials, St. Louis Fed President William Poole and Fed Gov. Donald Kohn.

Treasury prices were little changed, leaving the yield on the benchmark 10-year note near the 5.09 percent level reached late Thursday.

Oil price little changed in early trading, coming off of earlier highs for the day.

The July light crude futures contract for NYMEX slipped 3 cents to $69.47 in electronic trading, while the August contract for Brent crude slipped 17 cents to $68.28.