By Victor Reklaitis, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks pared gains on Wednesday after Federal Reserve Chairman Ben Bernanke said tapering of the central bank's bond buying could occur in the "next few meetings."

The Dow Jones Industrial Average (DJI) rose 76 points, or 0.5%, to 15,463. The blue-chip index had been up nearly 155 points, or 1%, but it gave up some ground after Bernanke began responding to lawmakers' questions.

The Standard & Poor's 500 Index (SPX) gained 8 points, or 0.5%, to 1,677. The Nasdaq Composite (RIXF) added 11 points, or less than 0.3%, to 3,513.

Bernanke started testifying at 10 a.m. Eastern before the Joint Economic Committee of Congress. He warned that premature tightening in policy could strangle the economic recovery, sending the main stock indexes to their session highs. Lawmakers then tried to nail down when the Fed will taper its bond-buying program, with one official asking if it could occur before Labor Day. Bernanke responded by saying that the Fed could slow down its asset purchases in its next few meetings. Follow along with MarketWatch's live blog and video of Bernanke's appearance.

"The one and only thing at the moment is Mr. Bernanke's presentation to Congress," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "He indicated continued leniency with regard to Fed policy given that economic conditions aren't yet sturdy enough to support its withdrawal."

On Tuesday, two other Fed officials provided some soothing commentary about sticking with the bond-buying program, helping to lift stocks to record highs.

The National Association of Realtors issued April data for existing-home sales. The rate was 4.97 million, roughly in line with expectations. Economists polled by MarketWatch had expected a seasonally adjusted annual rate of 5 million.

Wednesday's other key news will include the 2 p.m. Eastern release of minutes from the Federal Open Market Committee's April 30-May 1 meeting.

On the earnings front Wednesday, Lowe's Cos. (LOW) gained 1% in morning trade. The home-improvement retailer had been down in premarket trade after it posted worse-than-expected quarterly results before the opening bell, but encouraging comments from the company have boosted the stock during the regular session.

While sales and profit disappointed after unseasonably cold weather hurt demand for garden and other outdoor products, Lowe's said sales have turned positive in April and May as the weather got warmer. The company also expects a pick up in demand as the housing market rebounds.

Target Corp. (TGT) lost ground, falling 3%, as the big-box retailer's quarterly report disappointed as well. But home builder Toll Brothers Inc. (TOL) advanced 8% as its revenue came in well above forecasts.

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