Stocks struggle after rally

NEW YORK (CNNMoney.com) -- Stocks were mixed Wednesday morning, following the previous session's big runup, as investors mulled record-high oil prices and the dollar's plummet to a record low versus the euro.

The Dow Jones industrial average (down 0.40 to 13,307.99, Charts) lost 0.2 percent in the early going, while the broader S&P 500 (up 0.35 to 1,471.84, Charts) index inched lower. The tech-fueled Nasdaq composite (up 3.47 to 2,600.94, Charts) was barely changed.

David Kelly, managing director and economic advisor for Putnam Investments, said he's not surprised to see markets facing headwinds early, given the gains posted Tuesday. "This is very much a one step forward, one step back market right now," he said.

Treasury prices slipped, boosting the corresponding yields. The dollar fell to an all-time low versus the euro and was little changed versus the yen. Oil prices flirted with fresh records above $78 a barrel and gold prices slipped.

Stocks rallied Tuesday on bets that the Federal Reserve will cut a key short-term interest rate by as much as a half-percentage point when it meets next week.

Such bets continued to soothe Wall Streeters Wednesday, despite a runup in oil prices and a falling U.S. dollar.

In corporate news, Texas Instruments (down $0.71 to $35.01, Charts, Fortune 500) narrowed its earnings and revenue forecast to a range that is roughly in line with analysts' estimates. However, the company's mid-quarter update, issues late Tuesday, following Intel's more upbeat forecast earlier this week, and investors sent TI stock lower.

In global trade, most Asian markets ended lower, while European markets were lower in the afternoon.

Treasury prices fell, raising the yield on the 10-year note to 4.38 percent from 4.37 percent late Tuesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar fell to a record lower versus the euro and was little changed against the yen.

U.S. light crude oil for October delivery rose 60 cents to $78.83 a barrel on the New York Mercantile Exchange, briefly hitting an all-time trading high of $78.99. Prices showed little reaction to news Tuesday that OPEC has agreed to boost its daily oil production.

COMEX gold for December delivery fell $1.60 to $719.50 an ounce.