Stocks Come Off the Mat

Updated from 4:19 p.m. EST

Stocks in New York overcame an ugly start to finish only modestly lower Thursday as an upbeat factory report helped entice buyers to the market.

The major indices dropped sharply at the open after new selloffs overseas and found enough strength to ever-so-briefly edge in to positive territory late in the day. After a short stay in the green however, shares retreated back below the flat line.

The Dow Jones Industrial Average finished with a loss of 34.29 points, or 0.28%, at 12,234.34. At their worst, the industrials sank more than 200 points.

Of the Dow's 30 components, 20 finished negative. Citigroup (C Quote) was the best performer, up 1.4%, while Intel (INTC Quote) slumped 1.4%.

The S&P 500 erased most of its earlier loss and ended lower by 3.65 points, or 0.26%, at 1403.17. The Nasdaq Composite shed 11.94 points, or 0.49%, at 2404.21.

"We've stopped the bleeding, and now we're just trying to regain a sense of calm," said Paul Nolte, director of investments with Hinsdale Associates. "Now, we're tied to all of the markets overseas, and we'll be constantly watching them."

Roughly 3.89 billion shares changed hands on the New York Stock Exchange. Decliners beat advancers by a 10-to-7 margin. Volume on the Nasdaq reached 2.80 billion shares, with losers outpacing winners 2 to 1.

Most of the selling pressure was relieved at 10 a.m. EST after the Institute for Supply Management said its manufacturing index for February rose to a reading of 52.3. Economists had expected the index to advance to 50 from January's 49.3.